Indian economy to grow at 6.1%: World Bank

Business

oi-Sunil

By Sunil Fernandes

Published: Tuesday, April 30, 2013, 14:28 [IST]

India's economy is likely to grow at 6.1% in the current fiscal, compared with 5% in the previous year, the World Bank said in its India development update but stressed the need for continuing reforms.

In its biannual update, the World Bank said growth may accelerate in the coming months with recent economic data showing signs of a pick up. The forecast is in line with similar ones by the International Monetary Fund as well as economists that the Indian economy may have bottomed out.

Last week, the Prime Minister's economic advisory council had projected india's GDP would grow at 6.4% in the current fiscal.
With inflation slowing and the government sticking to its fiscal consolidation targets, the Reserve Bank of India may have more room to cut interest rates, which could aid growth momentum, the bank said.

The bank flagged the widening current account deficit as a worry but said the deficit could come down in the current fiscal to 4.5% of GDP with an improvement in the country's trade deficit.

PTI