India is expected to grow at 7.5 per cent in fiscal 2010 and at 8 per cent the year after, although the recovery in the world economy remains fragile, the World Bank has said in its latest report.
The Global Economic Prospects (GEP) 2010 report said the fallout from the crisis will change the background for finance and growth over the next decade.
“Although global growth is expected to return to positive territory in 2010, the pace of the recovery will be slow and subject to uncertainty,” it said.
“India weathered the global crisis relatively well, in part due to the government’s quick response in easing monetary policy and fiscal policy measures that supported domestic demand,” said Hans Timmer, of the World Bank Prospects Group.
The report shares areas of concern. As private consumption gains momentum, India’s export volumes are likely to expand and are projected to outpace the recovery in exports.
India’s economy grew 7.9 per cent during the July-September period — its strongest in six quarters — on the back of higher consumer spending and private investment. Growth of the Indian economy slowed to 6.7 per cent in 2008-09 after growing at close to 9 per cent for four straight years before the meltdown hit home.