World Bank cuts India's economic growth forecast to 7.5% for FY23
The World Bank on June 7 slashed India's economic growth forecast for the current fiscal to 7.5 per cent, keeping in mind rising inflation, supply chain stagnation and geopolitical tensions.
This is the second time that the World Bank has revised its GDP growth forecast for India in the current fiscal year 2022-23 (April 2022 to March 2023).
In April 2022, the World Bank had lowered the forecast from 8.7 percent to 8 percent, after which it is now estimated to be 7.5 percent.
Economic growth forecast expected to be 7.1 percent in 2023-24
The World Bank report also said that India's growth is expected to slow further to 7.1 per cent in 2023-24.
However, this is 30 basis points higher than the previous estimate of 6.8 percent.
India's GDP growth 6.5 percent in 2025
India's GDP growth for the financial year 2024-25 has been pegged at 6.5 percent by the World Bank.
However, this figure of decline in the growth forecast for the financial year 2022-23 is higher than the local estimation.
The Reserve Bank of India (RBI) has pegged GDP growth at 7.2 per cent for the financial year 2022-23.
India's other growth projections
Global rating agencies also downgraded India's economic growth forecast.
Moody's Investors Service cut its GDP forecast for 2022 to 8.8 percent from 9.1 percent, citing high inflation.
S&P Global Ratings too had cut India's growth projection for 2022-23 to 7.3 per cent, from 7.8 percent.
In March, Fitch had cut India's growth forecast to 8.5 per cent, from 10.3 percent.
The IMF has also lowered the projection to 8.2 percent from 9 per cent.
Asian Development Bank (ADB) has pegged India's growth at 7.5 per cent.
In April, the RBI lowered the forecast to 7.2 per cent from 7.8 per cent amid volatile crude oil prices and supply chain disruptions due to the Russia-Ukraine war.
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