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India to have higher growth, lower inflation in 2001: ESCAP

India will have a higher economic growth of 6.5 per cent and a lower inflation rate of five per cent in 2001, despite the adverse impact of the slowdown in the economies of the United States and Japan, according to a survey released Tuesday by the Economic and Social Commission for Asia and the Pacific (ESCAP).

The survey also pointed out that, India is expected to sustain a gross domestic product (GDP) growth rates of about seven per cent in the next three years (2001-2003), provided there is no serious external shocks, both natural and human, and the ongoing (second generation) economic reforms, especially in the infrastructure, insurance, financial and public sectors, continue.

Economic growth rate would be 6.9 per cent in 2002 and 7.2 in 2003,while inflation is expected to be static at five per cent, according to the survey.

India's GDP growth rate in 2000 was recorded at 5.9 per cent and inflation at 6.5 per cent.

According to the survey, a sharp slowdown in the US, and any loss of momentum in Japan would inevitably have adverse effects on growth in India and the other countries of the ESCAP region.

However, continuing growth in the region itself and in the European Union could offset the adverse effects to some extent. The effects of these developments would vary between individual economies depending upon the pattern of trade and output-mix of the countries concerned.

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