The global financial house said the revised update was mainly due to India’s economy showing greater resilience to global shocks and better September quarter data.
Updated – Tue, 06 Dec 22 at 03:49pm
New Delhi: The World Bank said on Tuesday that India’s real gross domestic product will grow by 6.9% in the current fiscal year, an improvement from its previous forecast of 6.5%.
In its update on India developments, the global financial house said the revised update was mainly due to the Indian economy showing greater resilience to global shocks and better September quarter data.
The World Bank has lowered its GDP forecast for 2023-2024 from 7% to 6.6%.
It also said India’s inflation rate is expected to remain at 7.1% in 2022-23. Although it could slip to 5.2% in 2023-24, the World Bank added.
“India’s economy rebounded strongly post-pandemic, driven by robust domestic demand, which also translated into a widening merchandise trade deficit,” the report stated.
At the same time, it added that “India is vulnerable to sharp changes in foreign portfolio flows, but capital mix has improved over the past decade as the share of FDI has increased”.
In October, the World Bank cut India’s GDP growth forecast to 6.5% from 7.5% previously.
World Bank country director August Tano Kwame said India was in a good position and the resilience of its domestic market would help it withstand all global shocks.
