Long Iraq war may affect Indian economy: World Bank

Wednesday, 02 April 2003, 20:30 IST
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NEW DELHI: A drawn out war in Iraq might adversely affect India's GDP growth and impact remittances from expatriate workers, a top World Bank official warned here Wednesday. "India's GDP growth depends on the war's outcome. If the war continues for a long time and oil prices continue to rise, it could affect the country," said William Shaw, lead economist with the World Bank's development prospects group. Speaking to reporters after launching the Global Development Finance 2003 report, Shaw noted that the war might adversely affect remittances from Indian expatriates. He said the war had "added more bumps to an uneven global expansion". Higher oil prices, falling consumer and business confidence, increasingly volatile financial markets and higher fiscal deficits were contributing to this phenomenon. Shaw pointed out oil prices were highly volatile due to the war. As India was a net importer of oil, this could affect the country, he said. The World Bank report projected economic growth of 5.3 percent for India and South Asia during 2003, marginally lower than the 5.4 percent projected in December 2002.
Source: IANS
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