Mumbai: India would contribute the most in the process of globalisation, which could spur global income growths in the next 25 years, a World Bank official said.
"India would be on top of the list in contributing toward globalisation due to size of its population and performance of exports," World Bank country director Fayez Omar said at the launch of a report titled Global Economic Prospects 2007: Managing the Next Wave of Globalisation.
Omar, however, said that unless globalisation is managed carefully, it could be accompanied by growing income inequality and potentially severe environmental pressures. This is an area where India would have to face challenges, he pointed out.
South Asian economy is estimated to have expanded at around 8.2 per cent in 2006, with India leading the way with a GDP growth of 8.7 per cent, backed by non-agricultural growth in excess of 10 per cent.
"This strong growth in the region is fuelled by economic reforms that have promoted private sector-led growth, sound macro management and greater integration with the global economy," the report, said.
Meanwhile, another World Bank report, Global Economic Prospects (GEP) 2007 has projected a moderation of India's own growth rate in the near term.
The Indian economy, which is expected to grow at a high growth rate of 8.7 per cent this year, is likely to have a moderate 7.2 per cent growth in 2008 due to tighter financial and fiscal conditions, the World Bank said.
The World Bank report noted that low real interest rates combined with an improved business climate and rising household savings have enabled higher investment rates in India, helping to sustain stronger growth.