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Home U.S. World Entertainment Sports Business Health Science Technology Politics Offbeat Environment Travel News Articles World Bank: India To Grow 8 Percent In 2011 Email Facebook Digg Twitter Buzz Up! ShareThis June 9, 2010 11:34 a.m. EST Topics: international economic institution, macro economics, economy, business and finance, economy, United States Yamini Kaul - AHN News Contributor Washington, United States (AHN) - The Indian economy is growing at a speed faster than expected and its rate of growth is becoming more broad-based with time, according to a World Bank report released Wednesday. The report said, “Growth in the second quarter of 2009-10 was an unexpectedly high 7.9 per cent…private demand growth has lately been the strongest in two years at the end of the third quarter of 2009-10.” The global financial institution predicted India’s economy to grow at the rate of 8-9 per cent over the next two years. While forecasting bright prospects for the Indian economic scenario, the report warned that the present rate of growth, though very encouraging, could be weighed down by certain factors: inflation, rising interest rates, less appreciation in value of rupee and economic slowdown in high-income countries. At the same time, “improved ratings, confidence indexes and expectations surveys” assure optimism in the Indian scenario, according to the bank. Insisting that the economic outlook for the country remains positive despite setbacks, the report mentioned, “Month-on-month, seasonally-adjusted annual rate indicates some moderation in inflation rates because of the drop in food prices in February 2010 compared to January 2010.” In order to sustain its optimistic growth rate, India needs to make a “gradual exit from monetary exit policies” as well as continue to spend more in social sector programmes, the report suggested. Along with India, the rest of the South Asia is also poised to become the second-fastest growing region in the world after East Asia and the Pacific. The overall growth rate of the region is expected to be 7 per cent in 2010 and 8 percent for the next year. The WB update mentioned that the region’s strength lay its resilience towards the financial crisis of 2008, which, in turn, was a result of the global integration policy of the countries in this part of the world. The report warned India and the region that the road to global integration was nevertheless fraught with risks such as slow worker remittances, hesitant global recovery, volatile commodity prices and continually volatile global capital flows. In the opinion of Andrew Steer, WB’s acting chief economist for the region, South Asian’s strength comes from the fact that in the past one and a half decades, the region has opened up towards the world markets and economies, which had provided it the ability to be resilient in the face of global shocks. Copyright © 2003 - 2010 AHN - All rights reserved.Redistribution, republication. syndication, rewriting or broadcast is prohibited without the prior written consent of AHN.License AHN news for your website, business, digital signage network or publication. Most Popular Stories The Karate Kid ( *** ) Gary Coleman Wanted Only Those Who Cared For Him At His Wake Lady Gaga, Metallica Headline "DJ Hero 2" U.S. Border Patrol Agent Kills Mexican Teen Alert Level Raised For Philippines' Taal Volcano Kristen Stewart Apologizes For "Rape" Comments Gary Coleman's Ex-Wife Shannon Price Behind Sale Of Death Bed Photos New Gary Coleman Will Allegedly Found 55 Bodies Found In Mexican Mine Ventilation Shaft Tea Party Pick Gets Republican Nod In Race To Unseat Harry Reid Recent Posts Most Popular Comments Recent Comments Popular Threads Home | U.S. | World | Entertainment | Sports | Business | Health | Sci / Tech | Politics | Weird / Offbeat Follow AHN on Twitter AHN Social News connects you with friends and the news Client Login | Submit News | Privacy Policy | Terms of Use | Contact | Content Services © 2010 AHN All Rights Reserved

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