World Bank estimates India's growth rate at 6.9%

The Indian economy will grow by 6.9 per cent in this financial year (2012-13), said World Bank in Tuesday's released report stating that it will face the problem of fiscal deficit, cut in investment activity and economic uncertainties.

World Bank in its report titled 'Global Economic Prospect' has estimated India's economic growth rate at 6.9% as Indian government's estimation that pegged it at 7.6% for FY 2012-13.

"India will see growth (measured at factor cost) increasing to 6.9, 7.2 and 7.4 per cent in fiscal years 2012-13, 2013-14 and 2014-15, respectively notwithstanding policy uncertainties, fiscal deficit and inflation,? World Bank report stated.

The agency said that growth in India in 2011 was weak due to a poor monetary policy, stalled reforms and electricity shortages. These factors, along with fiscal and inflation concerns, cut into investment activity worked together to moderate India's annual growth rate.

According to the report, India's economic growth rate slipped to a nine year low of 6.5 per cent in 2011-12.

The government has pegged growth at 7.6 per cent for the current fiscal. The economy has expanded by 8.4 per cent in the preceding two years.

--With ANI Inputs--