Sharing the Government’s optimism, the World Bank has estimated that India’s economy may grow over six per cent during 2013-14.
Addressing reporters after his meeting with Finance Minister P. Chidambaram, the World Bank Chief Jim Young Kim said, “We think India is going to grow by six per cent next year and we hope for more increase in future.”
Giving reasons for this optimism, he said the Indian economy, like any other economy, was impacted by the global slowdown. At the same time, the export market had started doing better. “We think India will do better as well,” he added.
Kim is on three-day visit to India, his first after assuming charge last July. His visit coincides with India’s growth touching a decadal low of five per cent. However, the Economic Survey has projected a growth rate of 6.1-6.7 per cent during 2013-14.
Expressing disappointment over the current growth rate, he said India had made an extraordinary contribution to the global economy, with its share in the global economy almost doubling in five years (2005-2010).
“The growth rate of five per cent here is one that has been somewhat disappointing, but we are very encouraged by what has happened and what will happen. We think India will get back to higher levels of growth and I was very impressed with all the things done by the Minister (Chidambaram) and his team to ensure that there is that growth in future,” he said.
Kim also met Prime Minister Manmohan Singh.
On Tuesday, he is scheduled to visit Lucknow and Kanpur and to study the ‘development challenges’ in Uttar Pradesh, which accounts for the largest number of India’s poor. He will also meet the State Chief Minister Akhilesh Yadav.
India is World Bank group’s largest client. Between 2009 and 2013, the group had extended around $25.5 billion loans to India. This includes $12 billion from the International Bank for Reconstruction and Development, $8.3 billion from the International Development Association and $5.2 billion in investments from the International Finance Corporation.