New Delhi: World Bank today (Jan 27, 2004) said India could achieve eight per cent economic growth, provided the Government stepped up reforms, including measures to contain fiscal deficit and wasteful subsidies.

"Eight per cent growth is achievable. But India needs to address its fiscal deficit, hike investment in infrastructure and carry out major policy changes to make capital more productive," World Bank chief economist (South Asia region), Shantayanan Devarajan said at a press meet in New Delhi.

The country recorded a gross domestic product (GDP) growth of 8.4 per cent during second quarter of this fiscal and over seven per cent in April-September last year.

Ministry of Finance, Reserve Bank of India (RBI) and research agencies like NCAER, RIS and Crisil have projected over seven per cent growth in GDP this fiscal.

Devarajan said the South Asia region might grow by six to seven per cent this fiscal compared to about five per cent in 2002-03.

"If India gets to eight per cent GDP growth mark, other countries in the region will also grow by one per cent higher," he said.

The World Bank economists said subsidies needed to be better targeted towards the poor, and delivery of education, health and other social services needed to be improved to benefit the weaker sections of the society.

Devarajan said the Government also needed to improve infrastructure and ensure imposition of user charges.