8% growth possible, says World Bank

The World Bank on Tuesday said that an 8 per cent rate of economic growth was possible for India, provided the government stepped up reforms, including measures to contain fiscal deficit and wasteful subsidies. ‘‘Eight per cent growth is achievable. But India needs to address its fiscal deficit, hike investment in infrastructure and carry out major policy changes to make capital more productive,’’ World Bank Chief Economist (South Asia region), Shantayanan Devarajan said here on Tuesday. Devarajan said the South Asia region is expected to grow by 6-7 per cent this fiscal compared to about 5.0 per cent in 2002-03.‘‘If India gets to the 8.0 per cent GDP growth mark, other countries in the region will also grow by 1.0 per cent higher,’’ he said. The World Bank economist said developing countries like India needed to target their subsidies better towards the economically backward and focus on improving delivery systems for education, health and other social services needed to be improved to benefit the weaker sections of the society. Devarajan said the government also needed to improve infrastructure and ensure imposition of user charges. Asked how the government should address the problem of fiscal deficit while improving social services and infrastructure, he said, ‘‘It’s not about more money to social sector. We have to strengthen service delivery before increasing the funding.’’