World Bank Cuts India’s Growth Forecast
First Published: ADawnJournal.com November 2, 2013
The days of the 8 percent GDP growth are distant memories and it seems like India’s economy has nowhere below to go, except up.
According to the global credit rating agency Moody’s, India should see a growth of 6.5 percent by the second half of 2015. On the same note, Moody’s expects fixed investment to grow 3.5 percent in 2014 as well.
However, the World Bank predicts a different picture. In a report released in recently, the World Bank cuts India’s GDP growth from 6.1 percent to 4.7 percent for 2013/2014 fiscal year and expects economy to go up to 6.2 percent in 2014/2015 fiscal year.
The International Monetary Fund (IMF) even predicts a more conservative growth 3.8 percent for 2013 and 5.1 percent for 2014.
India’s central bank chief ,Raghuram Rajan, expects the economy to pick by the year end due to restarting $115 billion dollars stalled resource projects and better than expected agricultural production. However, whether the interest rate hike is eminent is still uncertain.
India’s economy grew at around 8 percent between 2002 and 2013. In 2010-2011 it reached its peak at 9.3 percent, but reached a ten-year low, 5 percent, in 2012-2013.