World Bank has warned India that its growth prospects are weakened by high fiscal deficits and slow reforms, and the country needs to accelerate poverty reduction efforts, especially in UP, Bihar and MP, to meet the millennium development goals. “India’s growth prospects are weakened by excessive high fiscal deficits, resulting in one of the highest levels of public debt in its history, a slowdown in the implementation of structural reforms and a financial system that is successful at mobilising savings but not in efficient allocation,” theBank said in its mid-term progress report for 2001-04.Depicting a ‘mixed picture’ on reforms, it said external liberalisation has continued but the pace of domestic liberalisation has been inconsistent, privatisation has moved faster, there have been banking reforms but the system remains inefficient. “However, incentives for states and cities to undertake reforms have been strengthened,” it added.Despite India’s substantial progress on poverty in 1990s, the Bank asked the country to accelerate its efforts. “Progress on health indicators are slower,” it added. The report pointed out that poverty and illiteracy have become concentrated in poorer states—UP, Bihar and MP—accounting 50 per cent of India’s poor. “The country will not be able to achieve the MDGs without continued economic growth to widen opportunities and determined efforts to deliver more effective basic services,” it said. The millennium development goals include poverty eradication, primary education, promoting gender equality, reduction of child mortality, improvement in maternal health, combating HIV/AIDS, malaria and other diseases.
