World Bank cuts India growth forecast to 4.7%
India's economy will grow at 4.7% in 2013-14, the World Bank said in a latest report released on Wednesday, a sharp scale-down from its earlier forecast of 6.1% in April.business Updated: Oct 16, 2013 23:29 IST
India's economy will grow at 4.7% in 2013-14, the World Bank said in a latest report released on Wednesday, a sharp scale-down from its earlier forecast of 6.1% in April.
The latest projection by the multi-lateral funding agency is broadly in line with estimates of a host of other institutions including the International Monetary Fund (IMF) and the Asian Development (ADB), which have predicted a sub-5% growth for India this year.
India's gross domestic product (GDP) - the total value of goods and services produced in the country - grew at four-year low of 4.4% in April-June hit by a crippling industrial slowdown.
"The report (India Development Update) expects real GDP to expand by 4.7% in 2013-14 before accelerating to 6.2 per cent in 2014-15," said Martin Rama, World Bank's chief economist for South Asia.
Earlier this month, the IMF estimated that India's economy will grow at 4.25% in 2013-14 on account of poor demand and weak manufacturing and services sector performance, drawing criticism from the government.
According to the World Bank report, global investors focused more intensely on large emerging economies with greater current account and fiscal deficits as they withdrew funds from emerging markets in anticipation of an early end to the US Federal Reserve's quantitative easing programme.
In this environment, India's large twin deficits and slowing growth momentum added to investors' fears, the Bank said.
Wholesale inflation stood at a 7-month high of 6.46% in September and retail inflation rose to 9.84% during the month. Industrial output also crawled at 0.6% in August, belying hopes of an early turnaround.