World Bank cuts India’s FY’14 growth forecast to 6.1 percent.
The World Bank, in its latest India development update, scaled down its growth projection for India for the current financial year (FY 2013-14) from 7 per cent to 6.1 per cent.
The growth rate might increase to 6.7 per cent in the financial year 2014-15, the World Bank said. The update said that India’s economy is regaining growth momentum and that growth is expected to recover gradually to its high long-term growth potential.
“Economic growth is likely to accelerate to over 6 per cent during the current financial year (April 2013-March 2014). Growth is expected to increase further to 6.7 per cent in 2014-2015,” said Denis Medvedev, Senior Country Economist, World Bank, India.
According to the update, recent data points to some improvement in economic activity, and that inflation and the trade deficit came down in the last few months, while private consumption and investment growth has accelerated in the third quarter of the financial year 2013.