GDP growth to increase to around 6.5% in FY14: D&B

India's economy is expected to revive during the current financial year and the GDP growth is likely to increase to around 6.5% in FY14, Dun and Bradstreet said in a research note.

India's GDP growth is expected to revive and record an average growth of 6.5% during FY14 from the decade low witnessed during FY13, it said.

"The pace of recovery, however, is expected to be quite sluggish and the revival is contingent on how quickly policy correctives are put in place to address structural bottlenecks and encourage investment," Dun & Bradstreet India Senior Economist Arun Singh said.

Noting some concerns Singh said: "Upward movement in the oil prices, further delay in the global economic recovery, non -revival in corporate investment and infrastructure building and lack of proper implementation of the reforms could be major constraint to the overall growth going forward."

Some of the concerns listed include, prolonged non-resolution of the debt crisis in the Euro region, if monsoon turns out to be below normal, any shocks to oil prices, lack of proper implementation of reform process, non revival in corporate investment, lack of continuation of fiscal consolidation and political uncertainty.

On inflation the report said that the WPI inflation is likely to moderate considerably and average at around 5.7% during FY14 from 7.4% during FY13.

"While the pass through of fuel price adjustments is likely to provide upward pressure to overall inflation, easing of some supply side constraint is likely to help in subsiding inflationary pressures," Singh said.

Further, Index of Industrial Production (IIP) is likely to grow by 3.7% during FY14 owing to expected easing of monetary policy, thrust given by the government to promote industrial growth and revival in investment activity to some extent, it said.