India is expecting an expansion in the GDP in 2014 and 2015 by 4.7% and 6.2% respectively. It is also believed that in the next two years a reduction in the pace of poverty in some states would also be witnesses.

The latest India Development Update of the World Bank has clearly mentioned that the recent global market turmoil is unlikely to have major adverse effects on India and instead will provide an opportunity to regain growth momentum through further progress on reforms.

The report's projections assume an improvement in the global
macroeconomic environment, with global growth accelerating to above 3% in 2014 from around 2% in calendar 2013. The recent depreciation in the rupee positions India well to take advantage of the global recovery. Fully tapping these opportunities, however, will require policy efforts to narrow the infrastructure gap, buttress the financial sector via capitalization and broader banking & financial sector reforms, ease the restrictive regulatory environment which creates strong incentives for Indian firms to remain small, and strengthen fiscal balances.