New Delhi: Optimistic of India sustaining 8.0 per cent GDP (Gross Domestic Produce) growth, World Bank today (Feb 13, 2004) indicated it will step up assistance to the country next fiscal from close to $ 2.0 billion this fiscal.

"We are optimistic that Indian GDP growth would be up to 8.0 per cent in 2004-05 with fiscal adjustments taking place," World Bank country director Michael F Carter said after signing the second structural adjustment loan agreement for Andhra Pradesh today.

"India is doing extremely well. Growth has picked up and there has been improvement on the fiscal side also," he said.

The Central Statistical Organisation had pegged India's GDP growth at 8.1 per cent for this fiscal.

World Bank lauded Government for gradually carrying out "fiscal adjustment" by targeting a lower fiscal deficit at 4.4 per cent of GDP in 2004-05, from 4.8 per cent estimated for this fiscal.

Although this year's fiscal deficit is slated to be lower than the Budget estimate of 5.6 per cent mainly due to higher GDP growth, Carter said tax administration has also improved.

Centre's tax collection has surged by 17 per cent this fiscal, as against the Budget target of 16 per cent growth.

With Government placing top priority to infrastructure development, Carter said World Bank's country assistance would be stepped up next fiscal.

"This fiscal, we should be lending close to $ 2.0 billion. I think, it will be higher next fiscal," he said.

The bank is giving finishing touches to the Country Assistance Programme for next fiscal, which would be finalised by May.