The World Bank sees India regaining economic momentum and recording 6.1 per cent GDP growth in the current fiscal.
Growth is expected to increase further to 6.7 per cent in 2014-15, the World Bank said in its latest India Development Update, a bi-annual report on the Indian economy.
The 6.1 per cent growth forecast for 2013-14 is much higher than the five per cent growth estimated for 2012-13. It is, however, lower than the 6.4 per cent growth projected for the current fiscal by the Prime Minister’s Economic Advisory Council, headed by C. Rangarajan.
The World Bank’s optimism stems from positive data points in the recent months in the areas of manufacturing, inflation and better export numbers, said Denis Medvedev, Senior Country Economist, World Bank, India.
Despite the current downturn, long-term prospects remain bright for India, said Martin Rama, World Bank’s Chief Economist for the South Asia Region.
India has the fundamentals to grow at sustained high rates over the next several decades, Rama said.