The Indian economy will grow by 6.9 per cent in this financial year 2012-13 notwithstanding problems like policy uncertainties, fiscal deficit and inflation. The World Bank said this in the report titled 'Global Economic Prospect' in New Delhi.

Referring to developments in 2011, the multi-lateral lending agency said that growth in India was particularly weak due to monetary policy, stalled reforms and electricity shortages.

These factors, along with fiscal and inflation concerns, cut into investment activity. The report said India's economic growth rate in 2011-12 slipped to a nine-year low of 6.5 per cent.

The economy had expanded by 8.4 per cent in the preceding two years. For the current fiscal, the government has pegged growth at 7.6 per cent.