World Bank has estimated India's growth for the current fiscal at 6.8 per cent, lower than the government projection. The government has been expecting 7 to 7.5 GDP growth against last year's 8.5 per cent. In its Global Economic Prospects report, the Bank expects the GDP expansion to remain flat at 6.8 per cent in the next financial year as well. It says, it will then bounce back to eight per cent in 2013-14.

World Bank said that South Asia's economies are also confronted with domestic policy paralysis and uncertainty about regulatory reforms.