\"Indian economy to grow at 5.5% this fiscal\"

As per the World Bank, the Indian economy is expected to grow at 5.5 per cent in the current financial year and 6.3 percent in 2015-16.

According to the "Global Economic Prospects 2014" report released by the World Bank, India`s economic growth is estimated to accelerate to 6.6 per cent in 2016-17. 

Onno Ruhl, Director , World Bank Country, India, said,  "With a rising global demand, we expect that a rebound in domestic investments and a pick-up in manufacturing activity will help India move from two years of sub-5 per cent growth to over-6 per cent in the next year."

"Removing bottlenecks in energy supply, improving the business climate, and unlocking stalled PPP contracts are some of the key areas that could be addressed in the short term to bring India back to a high growth trajectory," added Ruhl. 

Unlike most developing countries, India`s recent growth has been well below potential, which provides space for economic activity to accelerate without building inflationary pressures, the report said. 

"This comes at a time when the outlook for most other developing countries is largely flat as they have by now recovered from the crisis and are growing close to potential," the report said. 

Ruhl suggested short- and medium-term priorities that could help India regain its growth momentum and improve progress in poverty reduction. 

Removal of immediate bottlenecks to growth will be crucial. Improving the business environment by reducing the regulatory and compliance costs for firms could help remove some of these hurdles. 

Revitalising the power sector by improving the performance of distribution utilities, and ensuring that players in the sector are subjected to financial discipline is another step.

Further investments in infrastructure, including re-pricing stranded PPP contracts and developing an integrated logistics strategy could address missing links in the transport system, he said. 

Overall, the global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8 per cent this year, strengthening to 3.4 per cent and 3.5 per cent in 2015 and 2016 respectively.