Indian Economy To Grow By 5 Percent In 2014: UN

UNITED NATIONS: The Indian economy will grow 5 percent in 2014 and record a slightly higher expansion of 5.5 percent next year on stronger consumption and investment, a UN report said.

The UN World Economic Situation and Prospects (WESP) 2014 mid-year update said India's economy would grow by 5 percent in 2014 and 5.5 percent in 2015, only slightly up from 4.8 percent in 2013 and 4.7 percent in 2012.

It said average economic growth in South Asia is projected to pick up gradually in the forecast period, after remaining near a two-decade low in 2013.

GDP is estimated to expand by 4.6 percent in 2014 and 5.1 percent in 2015, up from 3.9 percent in 2013.

"The moderate recovery is expected to be underpinned by stronger consumption and investment in the context of enhanced macroeconomic stability.

"Several of the region's economies, including India, have seen lower inflation, stronger external balances and more stable currencies in recent quarters, conditions that are expected to support business and consumer confidence," the report launched here today said.

It added that external demand is also projected to improve in 2014-15 as economic activity in developed economies gains momentum but the strength of the recovery in South Asia would be restricted by structural impediments, including energy and transport constraints, political unrest and violence, and a lack of economic policy reforms.