World Bank Projects India's Growth At Over 6 Percent

According to the report, in South Asia, weaker growth in India, following several years of rising inflation and current account deficits, has opened up a large negative output gap, which is projected to gradually close as the economy slowly recovers. Better Indian performance will be heavily reflected in the region's growth, which is expected to strengthen to 5.7 per cent in 2014 and about 6.7 per cent in 2016, it said.

Growth in South Asia is estimated to have been a very weak 4.6 per cent in 2013, mainly reflecting weakness in India.

Growth appeared to be recovering toward the end of 2013, and regional GDP on a calendar-year basis is projected to slowly accelerate to about 6.7 per cent in 2016, mainly reflecting stronger growth in India and a cyclical recovery in investment and external demand, it said.

"India's growth is projected to rise to just over 6 per cent in FY2014-15 and to increase to 6.6 per cent in FY2015-16 and 7.1 per cent in FY2016-17," the World Bank said. "Growth in India will be led by recovery in global demand and an increase in domestic investment, subject to downside risks."

Pakistan's growth is expected to moderate slightly to 3.4 per cent in FY2013-14, reflecting necessary fiscal tightening, and then rise to 4.5 per cent in the medium term, it said.
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