The World Bank on Wednesday projected an economic growth rate of 5.7 per cent in fiscal year 2014 for India on the back of a more competitive exchange rate and many large investments going forward.

“The region’s largest economy, India, would see growth rise to 5.7 per cent in fiscal year 2014 from 4.8 per cent last fiscal year with activity receiving a boost from a more competitive exchange rate and many large investment projects going ahead,” the World Bank said in its latest edition of ‘South Asia Economic Focus.’ Another multilateral agency IMF had on Tuesday forecast that Indian economy would recover from 4.4 per cent growth in 2013 to 5.4 per cent in 2014.

The World Bank report said in India the problem was the banking sector’s growing exposure to company debt.

The fear was that this could ultimately affect the government’s finances through its ownership of state banks and the need to prop up distressed but systemically important banks, it added.

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