The World Bank, on Tuesday, scaled down its projection on India’s GDP (gross domestic product) growth to 6.1 per cent for 2013-14 from 7 per cent estimated six months ago.
According to the latest ‘India Development Update’ of the World Bank, the lowering in growth forecast has been largely on account of a decline in the agriculture sector, which is estimated to grow at 2 per cent during the current fiscal as compared to the earlier estimate of 2.7 per cent despite projection of a normal monsoon.
The twice-yearly update on the Indian economy, however, has maintained that India is regaining economic momentum and growth is expected to recover gradually to its high long-term potential. As per the report, India’s GDP growth is likely to accelerate to over 6 per cent during the current financial year and increase further to 6.7 per cent next fiscal (2014-15).
Recent data, the update said, point to some improvements in economic activity. While inflation and trade deficit came down in recent months, private consumption and investment growth accelerated in the third quarter of fiscal year 2012-13.