The World Bank expects India’s economy to grow 6.5 per cent in 2012, lower than the government’s forecast of 7.5 per cent in the twelve months to March, as developing countries come under strain from economic troubles in western economies. The multilateral body on Wednesday said high inflation and interest rates would hurt domestic demand, with consumption and investment both suffering. The government, which is struggling to meet its fiscal-deficit target for 2011-2012, was unlikely to make up the shortfall with much fiscal action.