India's economic growth likely to fall to 6.1%, says United Nations
The UN has trimmed its growth forecast from 7.2 per cent estimated in June 2012.
However, the forecast of 6.1 per cent growth for this year is much better than 5.5 per cent expansion seen in 2012, as per the UN 'World Economic Situation and Prospects 2013' report.
"GDP growth in India will accelerate to 6.1 per cent in 2013 and 6.5 per cent in 2014 as a result of stronger growth of exports and capital investment... Investment demand is expected to respond to a more accommodative monetary policy stance and slightly improved business confidence," it said.
UN ESCAP's (Economic and Social Commission for Asia and the Pacific) Chief Economist Nagesh Kumar today said that India has huge growth potential in the long term.
India and China are playing a major role in the growth of world economy," he told reporters here.
The slowdown in growth to 5.5 per cent last year "reflected weaker consumption and investment demand as a result of persistent inflation, high nominal interest rates, large fiscal deficits and political gridlock," the UN said.
These factors would likely continue to impact economic growth in the next two years even as a moderate recovery is expected, it said.
According to the UN, India's annual growth declined from over 9 per cent clocked in 2010 to about 5.5 per cent
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