New Delhi, Sept 18: World Bank on Wednesday said India can achieve an economic growth of 8.0 per cent during the Tenth Plan period only if it undertakes comprehensive reforms and reduces its internal debts and fiscal deficit. "A comprehensive reform programme including reforms to reduce fiscal imbalances with positive impacts on employment and poverty reduction would allow India to achieve the growth of 8 per cent a year by the end of the Tenth Plan period," former vice president of World Bank Mark Baird said releasing a report 'India: Sustaining Reform, Reducing Poverty'.
In absence of reforms, the World Bank warned that growth could be slower at 5.0 per cent.
"In the absence of any major external or domestic shocks, current policies in India are likely to translate into a continued growth slowdown, averaging around 5 per cent a year over the Tenth Plan period," the report said.
Expressing concern over the sharp increase in revenue deficit which doubled from less than 3 per cent in 1980s to more than 6 per cent of GDP over the past six years, the report said the government has to initiate fiscal reforms in the tax system, reduction in subsidies, financial sector reforms and improvement in overall fiscal management.
In the social sector, the report said progress in education was much greater than in health with infant mortality rates and malnutrition continuing to be higher. Bureau Report