World Bank chief: Caste factor likely to hit growth

Calling India a “a bright spot in a mediocre global economic outlook”, World Bank president Jim Yong Kim said Sunday the nation could grow at 6.4 per cent in 2015 and accelerate further next year. But he also cautioned that an enduring “bias” over caste and other factors could impede prosperity in India.

“Indian society has an enduring exclusion that is based, among other things, on caste identities. This bias can impede shared prosperity, serving as a basis for discrimination in many spheres, including employment and other markets, as well as in public services,” he said at the ongoing Vibrant Gujarat Summit.

Mr Jim, however, acknowledged that the government was trying to address such issues and said Prime Minister Narendra Modi had focused on programmes to promote “broad sharing of benefits”, in addition to action that will accelerate growth. There was “much reason for optimism” by investors, he added.