In the wake of the IMF’s decision to cut its growth forecast for India, the World Bank has slashed the country’s growth forecast for the current financial year to 4.7 percent from an earlier projection of 6.1 percent.
“The report (India Development Update) expects real GDP to expand by 4.7 percent this fiscal year before accelerating to 6.2 percent in FY2015,” said Martin Rama, the Bank’s chief South Asia economist.
The rupee’s recent plunge against the U.S. dollar has made India’s exchange rate “more competitive than the developing country average”, giving the nation’s exports a chance to outperform emerging market rivals, Ram said.
“We remain upbeat on growth potential,” he told a news conference.
India’s GDP growth slowed to five percent in the year ended March from an average of eight percent over the past decade.
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