India to see 6% growth next year, says World Bank chief.

Indian economy is likely to grow at a rate of 6 percent next year and probably more thereafter as exports markets start doing better, World Bank President Jim Yong Kim said today.

India will get back to higher levels of growth, Kim said even as he expressed disappointment over 5 percent growth (the projected rate for this financial year). "India is going to grow by 6 percent next year and we hope for even more increase in future," Kim told reporters after a meeting with Finance Minister P Chidambaram here.

Kim, who is on a three-day visit to India, said: "Growth rate of 5 percent here is one that has been somewhat disappointing but we are very encouraged by what has happened and what will happen and we think India will get back to higher levels of growth."

The Indian economy is subject to global slowdown, he said, adding that "as export market starts doing better, we think India will do better as well".

Indian economy is estimated to have grown 5 percent in 2012-13. The Economic Survey of 2012-13 has predicted a growth rate of 6.1-6.7 percent for the next fiscal.

In his meeting with the World Bank chief, Chidambaram underlined the need for enhancing the capital base of the World Bank to meet the challenges of poverty reduction and infrastructure development in the developing countries.

Besides, issues related to global economy and its impact on India were discussed, a Finance Ministry statement said. India's share in global economy almost doubled in five years between 2005 and 2010, Kim said while lauding efforts of the Finance Minister to ensure high growth rate in future.

Kim is scheduled to visit Uttar Pradesh tomorrow and meet Chief Minister Akhilesh Yadav. He would visit Lucknow and Kanpur to see development challenges in the state, which accounts for the largest number of India's poor. This is Kim's first visit to India after taking over as President of World Bank Group in July last year.

Chidambaram, as per the statement, emphasised the need for continued and enhanced engagement of the World Bank Group with India in view of huge investment requirements in the infrastructure, social and rural development sectors.

They also discussed options for increasing external finance for infrastructure other development needs of India. The minister also informed Kim about the challenges faced by the Indian economy at present and recent reforms.

India is the highest cumulative borrower of World Bank of USD 90.5 billion; with a current portfolio of 77 projects having a commitment of USD 23.3 billion. Kim assured adequate support to India in meeting the developmental challenges being faced by the country.


Source : moneycontrol.com