World Bank raises India FY23 GDP growth forecast to 6.9%
1 min read . Updated: 06 Dec 2022, 11:15 PM IST
PremiumAfter growing at 8.7% in FY22, India’s GDP reported a 13.5% expansion in the June quarter and a 6.3% growth in the September quarter
NEW DELHI : The World Bank on Tuesday raised India’s economic growth forecast for the current financial year to 6.9% from its October estimate of 6.5% citing the economy’s resilience in the face of challenging external environment and the September quarter performance. The multilateral agency lowered its India growth forecast for next fiscal to 6.6% from 7% made earlier.
While the deteriorating external environment will weigh on India’s growth prospects, the economy is relatively well positioned to weather global spillovers compared to most other emerging markets, the World Bank said in its latest India development update titled ‘Navigating the Storm’.
Impact of a tightening global monetary policy cycle, slowing global growth and elevated commodity prices will mean that the Indian economy will experience lower growth in 2022-23 compared to 2021-22, World Bank said in a statement.
After growing at 8.7% in FY22, India’s GDP reported a 13.5% expansion in the June quarter and a 6.3% growth in the September quarter, as per data from the ministry of statistics and programme implementation. Despite the challenges, India is expected to register a strong GDP growth and remain as one of the fasted growing major economies in the world, due to robust domestic demand.
The World Bank said its upward revision of 2022-23 GDP forecast was in view of a strong outturn in India in the second quarter of FY23. “India’s economy has been remarkably resilient to the deteriorating external environment, and strong macroeconomic fundamentals have placed it in good stead compared to other emerging market economies," the statement said, quoting Auguste Tano Kouame, World Bank’s country director in India. World Bank said that rapid monetary policy tightening in advanced economies has already resulted in large portfolio outflows and depreciation of the rupee while high global commodity prices have led to a widening of the current account deficit. However, India’s economy is relatively insulated from global spillovers compared to other emerging markets, it said. This is partly because India has a large domestic market and is relatively less exposed to international trade flows.
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