World Bank pegs FY11 GDP growth at 7.5%
New Delhi: The World Bank on Monday said the
country is likely to grow at 7.5 per cent next fiscal and the
growth prospects remain strong, even as the world economy
"India is expected to grow at 7.5-8 per cent in the
fiscal 2010-11 and 2011-12, respectively, well above the 6.4
per cent average posted during 1995-2005," said the bank's
Global Economic Prospects 2010 report released here today.
This comes at a time when the global recovery remains
fragile and is expected to slow later this year as the impact
of the fiscal stimulus measures wanes, it said.
"India's growth will benefit from a firming in external
demand, particularly by resumption of growth in high-income
countries," said the report.
Foreign direct investment inflows to the country are
expected to increase in 2010, the report said, adding this
will be on the back of the recovery of the overall investment
into the developing countries this year and as New Delhi
improves its FDI policies.
"India weathered the global crisis relatively well, in
part due to the government's quick response in easing monetary
policy and counter-cyclical fiscal policy measures that
supported domestic demand," said report's author Hans Timmer,
who is the director of the World Bank Prospects Group.
For the current fiscal, the Bank sees the economy growing
at 6 per cent. When asked for the reason for the pessimistic
view, Timmer said, "the report was not written yesterday. We
just had the first quarter growth figures (6.1 per cent) when
the report was written. I won't be surprised if the growth
numbers comes out to be higher."