The World Bank report on Global Eoconomic Prospects drove home a charge on "policy paralysis and uncertain regulatory reform prospects" released yesterday defines the new global growth benchmark to 2.5% counting the global recession where it places India's growth lower at 6.9% and staying low in 2012/13 Conservatism counts at this time and India's fate determine;s the region's fate to a great extent as South Asia has been expected to grow above 6% with Sri lanka, Pakistan and Bangladesh managing a above 4% growth and this reduction in India's groth potential from the crisis is bringing that target for 2012 to below 6%

The mint commentator on the story relied entirely on the infographic while the DNA India team put it "zimblee" in words

The World Bank report said that the weakening in activity reflects a significant moderation in domestic demand, led by a deceleration in investment activity that has faced headwinds of rising borrowing costs, high input prices, slowing global growth and heightened uncertainty.

"Delays and uncertainty surrounding the implementation of policy reforms have also hindered investment," it said.

Addressing a Ficci meeting, Finance Minister Pranab Mukherjee also conceded that the government could not push through some key policy reforms due to divergence of political opinion in Parliament.

 

To be fair, the mint commentator did report on India's challenges to growth in detail, but my interest in both cases was the interedpendency and whether India can indeed lead such apolitically volatile region at SAARC etc. 

The report hit the networks int he late evening bulletin

Posted via email from The India Investment Post