The global financial institution said that the revised update was mainly due to greater resilience shown by the Indian economy against global shocks and better September quarter figures.
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New Delhi: The World Bank on Tuesday expressed optimism that India’s real GDP would grow at 6.9 per cent in the current fiscal, an improvement from its previous projection of 6.5 per cent.
In its India Development Update, the global financial institution said that the revised update was mainly due to greater resilience shown by the Indian economy against global shocks and better September quarter figures.
The World Bank has revised its GDP estimate downwards for 2023-2024 from 7 per cent to 6.6 per cent.
It has also said that India’s inflation is expected to stay at 7.1 per cent in 2022-23. Though it may slide down to 5.2 per cent in 2023-24, the World Bank added.
“India’s economy has rebounded robustly post pandemic, driven by robust domestic demand which has also translated into a widening goods trade deficit,” the report noted.
At the same time it added that “India is susceptible to sharp movements in foreign portfolio flows, but the capital mix has improved over the last decade with rising share of FDI“.
In October, the World Bank had cut India’s GDP growth forecast to 6.5 per cent from 7.5 per cent earlier.
Auguste Tano Kouame, Country Director, World Bank said that India was placed well and its domestic market’s resilience will help it to weather all global shocks.
Source.
