World Bank sees 6.7% GDP growth for India by FY'15

Jun 13, 2013, 11:23 IST | PTI

The World Bank today forecast a 6.7 per cent growth rate for India by next fiscal as exports and private investment are projected to strengthen and provide a boost to growth

In its latest 'Global Economic Prospects' report, the World Bank said South Asia's regional growth will be driven mainly by a projected pick up in India, whose GDP in factor cost terms is projected to grow 5.7 per cent in the 2013 fiscal year (ending in March 2014), and then accelerate to 6.5 per cent and 6.7 per cent in FY2013-14 and FY2014-15, respectively.

Exports and private investment, which slowed sharply in 2012, are projected to strengthen during 2013-15 and provide a boost to growth. However, how robust that recovery will be, will depend on the pace of policy and fiscal reforms, and remains subject to significant uncertainty and downside risks. Some upside risks to the outlook include a faster-than- projected pick up in global demand and a larger than expected decline in commodity prices, the report said.

According to the report, a greater dependence on foreign investment inflows to finance India's significantly larger current account deficit compared to the past has increased its vulnerability to a sudden reversal of investor sentiment.

"Several factors could result in a slowing or reversal of investment inflows -- an unanticipated monetary tightening in some high income countries; resurgence of debt tensions; escalation of geopolitical conflict; and even disenchantment with the pace or nature of domestic reforms," it said.

Moreover, the sharply relaxed monetary policy in Japan could result in strong and disruptive private capital flows, it added. Noting that the business sentiment in the manufacturing sector in India weakened to a four-year low in May, the report said if business sentiment were to remain weak in coming months, this could adversely impact investment and growth.

Reese Witherspoon suffers wardrobe malfunction Los Angeles, Jun 13 (PTI) 'Sweet Home Alabama' star Reese Witherspoon suffered a wardrobe malfunction when her skirt got caught in a sudden gust of wind.

The red and white flower-print skirt was short, loosely fitted and made of light, flowing fabric and hence it easily flew up, reported Ace Showbiz. Despite the embarrassing snapshot, Witherspoon just laughed it off.

Recently, the 'Walk the Line' actress was charged with disorderly conduct after she got caught in a verbal tussle with the police officer who was arresting her husband Jim Toth for driving under the influence of alcohol. The couple was in Atlanta to shoot the film 'The Good Lie' and was pulled over in the early morning of April 19 when the cop noticed their car was in the wrong lane.  

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