New Delhi: United Nation's economic and social survey on April 17 warned that Iraq war and SARS (Severe Acute Respiratory Syndrome) will impact Indian economy, pushing down growth prospects by almost 1.0 per cent to 5.1 per cent in 2003.

The survey brought out by UN's Economic and Social Commission for Asia and Pacific (ESCAP), earlier projected India's gross domestic product (GDP) growth at 6.0 per cent for 2003, but it revised it downwards to 5.1 per cent in the face of Iraq war, SARS and depressed demand in US, Japan and Europe.

"ESCAP region performed well in 2002. Growth was based on stimulative fiscal and monetary policies and on strong intra-regional trade. However, prospects for 2003 are conditioned by war in Iraq and its aftermath, impact of SARS and growth in US, Japan and EU," the report said.

Research and Information System for Non-Aligned and other developing countries (RIS) director general Nagesh Kumar, however, said Indian economy might not be affected so adversely as projected by ESCAP survey and could still post 5.5-5.6 per cent growth this year.

"Since the Iraq war was short, my hunch is that India's GDP will grow in the region of 5.5-5.6 per cent. If oil prices fall, we might end up with 6.0 per cent growth," he said releasing the survey.

Even after the revision, India continues to be one of the fastest growing nations after China, slated to grow by.7.5 per cent, Vietnam (7.0 per cent) and Fiji (5.2 per cent).

While global growth rate has been revised to 2.3 per cent from the earlier stance of 2.8 per cent, the GDP growth for the developing nations of Asia-Pacific region was revised to 5.0 from 5.4 per cent.

PTI