A pick up in growth of Indian economy to about 6.4 per cent next fiscal is expected to drive South Asia's economic expansion to a four-year high in 2015, says an UN report released today.
"Indian economy is certainly on a more robust kind of growth. We expect the Indian economy to be much better at 6.4 per cent in 2015-16. Indian Government is talking about business friendly environment.
"The growth in South Asia is projected to strengthen to 5.4 per cent in 2015 and 5.7 per cent in 2016," said the UN World Economic Situation and Prospects (WESP) 2015 report.
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The recovery is expected to be led by a pick-up in growth in India, which accounts for about 70 per cent of regional output, said the report.
For the current fiscal ending in March, UN expects India to grow at about 5.5 per cent.
The average gross domestic product (GDP) growth of South Asia accelerated from 3.7 per cent in 2013 to 4.9 per cent in 2014.
Further, it said that sub par monsoon as well as fiscal constraints have weighed on Indian economic activity and going forward it is expected to see a gradual acceleration in growth.
