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WB says India weathered global crisis 'extraordinarily well'

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Press Trust of India Bangalore
Last Updated : Jan 20 2013 | 11:39 PM IST

World Bank today said India has done "extraordinarily well" in tackling the global economic crisis with sound fiscal and monetary policies.

"India has done extraordinarily well in weathering a global crisis which was the most severe in 70 years," WB Country Director Roberto Zagha said here.

"India is fortunate to have had a macro economic management that it has," he said.

Noting that the global crisis was of unprecedented proportions and nature, he said India handled it remarkably well on fiscal and monetary fronts as also on issues relating to contraction in credit.

"WB is very much appreciative of how India tackled the global crisis. We are very impressed. The (Indian) government has a situation very well in hand in the short term and the 11th Plan gives a very good perspective for the medium term," Zagha said.

On WB's short-term goals for the country, he said essentially it would be on how best it can support the country's priorities as set out in the 11th Plan.

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Zagha said if India continued to grow the way it's been growing, it would be an industrialised country (in terms of per capita income level) in about 25 years which (also) "means that need for the bank (to extend loan to India) will no longer be there."

World Bank had (already) become a small but valued partner in India, Zagha said adding while India had grown to become a trillion dollar economy, "we (World Bank) have not grown that fast."

On the global recession, Zagha said it had already bottomed out but would take sometime before "we get out of the bottom."

"It will be what you can say the 'U' recovery", he added.

A former senior Adviser to WB Vice-President, Zagha also said the bank was making a claim with its shareholders to increase its capital, adding, "India is supportive of that."

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First Published: Sep 11 2009 | 2:57 PM IST

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