The UN said in its report it is likely that monetary policy can be eased a little in the near future if the trend of lower inflation stays intact, a move that would further support growth.

United Nations says India is likely to make progress in implementing economic policy reforms and help provide support to business and consumer confidence.

In the non-agri commodities space, the yellow metal has gained grounds once again in the recent weeks and rose nearly six per cent this month.

Prime Minister Narendra Modi will visit Washington to meet President Barack Obama in September, media reports said, signalling a new start in ties with a leader once denied a visa by the United States.

The economy is in tatters and the country now hopes that the Narendera Modi-led government will revive manufacturing and infrastructure projects to generate quality jobs for the growing workforce.

Asia's third-largest economy grew 4.7 percent in 2013/14, slower than an official estimate of 4.9 percent and higher than 4.5 percent growth a year earlier. It marks the second straight year of sub-5 percent growth - the worst slowdown in more than a quarter of a century.

The Indian economy will grow 5 per cent in 2014 and record a slightly higher expansion of 5.5 per cent next year on stronger consumption and investment, a UN report said.

Business houses in the US, the UK and other parts of European Union are happy with the prospects of Modi winning the polls. They have concerns about his unproven secular credentials, but are quick to add that if he comes to power, he would be accountable to the people and constitutional institutions.

The Reserve Bank said growth is expected to fall below 5 per cent in 2013-14 in absence of pick-up in manufacturing sector, but likely to recover to 5.5 per cent in the next financial year.

Rajan will surely press the pause button to support growth for the time being. Growth is still weak. GDP growth is expected to fall to 4.8 per cent in 2013/14 against 5 per cent in 2012/13.

The UN World Economic Situation and Prospects 2014 (WESP) report said a mild recovery in investment as well as stronger export growth will help in the gradual GDP pick-up in India.

India's official think-tank will revise downwards the ambitious growth target of 8 per cent, for the 12th Plan, in the new year as part of its mid-term review exercise.

The lifting of the European Union restrictions on insurance opens the door for Indian refiners to increase imports to contract levels without breaching sanctions.

Without second-generation reforms and a drastic overhaul of its institutions, India is condemned to mediocre income and growth, says Business Today Editor Chaitanya Kalbag.

The UPA government will do its best to follow its economic agenda, but it will be naive to expect breakthrough reforms.

Finance Minister P Chidambaram, while taking questions on the DMK pullout, also said he will go ahead with his meetings with foreign investors to persuade them to invest in India.

According to the United Nations the Indian economy is projected to grow at a slower pace of 6.1 per cent this year even as exports and capital investments are likely to be much better than in 2012.

It added that on the production side, the main contribution to growth will come from the expanding labour force, increase in capital stocks and improved productivity.

Projecting a GDP growth of 6.8 per cent for 2013-14, it said there are reasons to believe the economy has turned the corner.

The World Bank report also warns of acute problem for 30 developing countries, including India, where they will need external financing needs for maturing short and long-term debt, and current account deficits that exceed 10 per cent of GDP.