In its latest 'Global Economic Prospects' report, the World Bank said South Asia's regional growth will be driven mainly by a projected pick up in India, whose GDP in factor cost terms is projected to grow 5.7 per cent in the 2013 fiscal year (ending in March 2014), and then accelerate to 6.5 per cent and 6.7 per cent in FY2013-14 and FY2014-15, respectively.

Exports and private investment, which slowed sharply in 2012, are projected to strengthen during 2013-15 and provide a boost to growth. However, how robust that recovery will be, will depend on the pace of policy and fiscal reforms, and remains subject to significant uncertainty and downside risks. Some upside risks to the outlook include a faster-than- projected pick up in global demand and a larger than expected decline in commodity prices, the report said.