India to Grow at 7.2% in FY17, Says World Bank Report

New Delhi: A World Bank report has projected India's economic growth at 7.2% in current fiscal year, up from 6.8% in 2016.

The report, which was released on Sunday, also said the effects of demonetisation has waned.

"Timely and smooth implementation of the GST could prove to a significant benefit to economic activity. However, India faces the challenge of further accelerating the responsiveness of poverty reduction to growth," the report said.

The report suggested that a backlash against globalisation could benefit South Asia, including India, while saying possible protectionism in advanced economies should not deter export-oriented growth in South Asia.

It also found that South Asia remains the fastest-growing region in the world, gradually widening its lead relative to East Asia. Regional GDP growth is expected to rise from 6.7% in 2016 to 6.8% in 2017, and 7.1% in 2018.

It claims that global integration has been good for economic development and poverty reduction, but finds that the region would be resilient to higher trade barriers in advanced economies.