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World Bank has downgraded global growth forecast by 0.5 per cent but expects the growth momentum to pick up.
Terming the overall growth prospects for South Asia as "disappointing", the Bank said developing economies need to shift their focus from demand management (to curb inflation) to more growth focused policies.
Despite a slowdown, developing countries in South Asia are continuing to outperform global developing countries average, the World Bank said in its Global Economic forecast.
India's growth
India's growth is expected to accelerate on the back of a revival in developed economies, which is expected to double the contribution of advanced economies to global import demand growth, the report said.
It added that stable or falling commodity prices, including energy, will help developing countries like India to accelerate growth.
GDP growth
The World Bank has projected a 5.5 per cent GDP growth for India in calendar 2014, rising to 6.3 per cent and 6.6 per cent over the subsequent years.
The multilateral lender flagged a sharp decline In investment as a key factor dragging down growth. Declining factory productivity and labour contribution were also cited as additional factors slowing the growth.
Relatively high financial vulnerabilities, with external financing requirements at 10 per cent of GDP remain an issue, Andrew Burns, World Bank Chief Economist, said while releasing the report in New Delhi today.
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