The World Bank reduces India’s growth forecast to 6.5% in 2022-23

Tags: Economy/Finance

The World Bank in its latest report on South Asia released on 6 October 2022 has reduced the expected Indian economy growth rate in 2022-23 to 6.5% from an earlier estimate of 7.5% it forecasted in June 2022.

Growth estimates for the South Asian region - comprising India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives were revised down to 5.8% from 6.8% forecast in June 2022.

The bank cited the impact of war in Ukraine, which has caused a rise in commodity prices, and the uneven recovery from the impact of the COVID-19 pandemic in the region.

In a recent report the United Nations Conference on Trade and Development (UNCTAD) also revised the Indian economic growth in 2022 to 5.7%.

This is the third time the World Bank has revised its GDP growth forecast for India in 2022-23. In June, it had slashed its GDP growth forecast for India to 7.5%. Earlier in April, it had trimmed the forecast from 8.7% to 8%.

The Reserve Bank of India (RBI) has recently cut the economic growth projection for the current fiscal to 7% from 7.2% estimated earlier on account of extended geopolitical tensions and aggressive monetary policy tightening globally.

Important for Exam 

World Bank headquarters: Washington D.C, United States of America

World Bank President: David Malpass 

The report published by World Bank are 

  • World Development Report 
  • Global Economic Prospect 
  • Ease of Doing Business (it has been suspended now )

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