A United Nation report says India is projected to see a faster growth of 7.5 per cent this fiscal on the back of
higher savings and investment rates. However, most of the Asia-Pacific economies are likely to expand at a slower pace.

United Nations economic Commission for Asia and Pacific, UNESCAP, Chief Economist Nagesh Kumar said the Indian economy's strong fundamentals such as high saving and investment rates and rapidly expanding labour force

and middle class will ensure a steady economic performance. He said the growth estimate in the current fiscal is higher than the estimated 6.9 per cent growth in the last fiscal year.

The UNESCAP report, however, said that weaknesses of major developed economies pose a major threat to the growth in the Asia-Pacific region, which could come down to 6.5 per cent in 2012, from 7 per cent in 2011.

United Nations Under-Secretary-General Noeleen Heyzer said the higher cost of capital and reduced demand for regional export, combined with loose monetary policies and trade protection measures of some advanced economies, contributes to this slowing of Asia-Pacific growth in 2012.

As regards India, the UN report said there are indications the economy is turning around as core sectors, including manufacturing, show signs of recovery.