World Bank projects 5.7% growth for India in 2014-15
The World Bank has projected an economic growth rate of 5.7% in 2014-15 for India. World Bank projected an acceleration of growth (factor costs) in FY 2014 to 4.8%, further increase to 5.7% in FY 2015
Rationale: This growth rate was projected by the World Bank owing to enduringly more competitive exchange rate and advancement towards sanction of crucial investment projects.
The International Monetary Fund (IMF) had earlier forecast that Indian economy would recover from 4.4% growth in 2013 to 5.4% in 2014. IMF had also quoted export competitiveness as grounds for potential growth revival.
The World Bank held that in India the trouble is the banking sector’s growing exposure to company debt. The concern is that this could finally impact the government’s finances via its possession of state banks and the call for to shore up stressed but systemically important banks.