Anti-poverty targets are being missed, the World Bank warns

The Bank's first development policy review of India broadly praises the country's economy, arguing that enormous progress has been made in recent years.

But growth, the World Bank said, was still insufficient to combat poverty in line with internationally-agreed targets.

Worse, the high government budget deficit - currently 5.3% of gross domestic product - threatens to slow growth in the future.

The Indian Government has committed to tidying up its finances, but critics say that political considerations have dissuaded it from tough spending cuts.

Could do better

The government says it is on track to achieve 8% annual economic growth over the next five years.

But most independent forecasts are in the 5.5-6% range - a relatively modest figure by recent Indian standards.

Part of this slowdown is the result of factors beyond the government's control, including a devastating drought last year.

But the government has also failed to trim its budget enough to stimulate growth, the World Bank said.

"India has continued to make impressive progress in increasing incomes and improving standards of living in the past decade but it will be difficult to sustain this trend unless there is an acceleration of reforms including serious fiscal adjustment," the Bank said.

According to its critics, the government is now focused on next year's general elections, to the exclusion of economic prudence.