Higher growth in India to push up
S Asia growth: World Bank
Prospects of a higher gross domestic product growth rate in India are likely to push up the overall chances of the recession-hit South Asian region to about 5 per cent growth this year, the World Bank said on Wednesday.
"GDP in South Asian region increased by 4.3 per cent in 2001, up from 4 per cent growth in 2000. The region is expected to recover modestly this year with an average growth rate of 4.9 per cent and thereafter remain at a rate around 5.3 per cent," the Bank said in its latest 'Global Development Finance' report.
According to the report, global economic slowdown was exceptionally deep and broad, as the decelaration in growth rates has been equally rapid for both rich and developing countries.
Distribution of foreign direct investment in South Asia was almost proportional to GDP with 75 per cent going to India and around 10 per cent going to Pakistan and Bangladesh.
Foreign direct investment in India increased by $1billion in the year to reach $3.3 billion. However, the report pointed that despite a 35 per cent rise in FDI to the region at $4.2 billion in 2001 from a year ago period, FDI in the region was small, only a 0.5 per cent of GDP.
Low FDI flow into the region reflects "little progress in privatisation, glacial industrial regulations and slow reforms in the labour market", it said.
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