World Bank 2022-23 GDP Forecast for India
The World Bank has increased India’s GDP forecast for the current fiscal year from its October estimate of 6.5 per cent to 6.9 per cent.
World Bank’s Latest Forecast
- The World Bank has raised its forecast for India’s economic growth to 6.9 per cent because of the economy’s resilience while facing external challenges as well as September quarter performance.
- Previously, it had lowered India’s growth forecast for the current fiscal to 6.5 per cent from the earlier forecast of 7 per cent.
- Though the deteriorating external environment will have a significant impact on India’s economic growth, the economy is relatively well positioned to weather global impact compared to most other emerging economies.
- It is expected to witnessed lower economic growth in 2022-23 when compared with 2021-22 because of several reasons like:
- Tightening global monetary policy cycle
- Slowing global economic growth
- High prices of commodities
- After growing at 8.7 per cent in FY22, the country’s GDP recorded a 13.5 per cent expansion in the June quarter and a 6.3 per cent growth in the September quarter.
- Despite the challenges, the country is expected to witness a strong GDP growth and remain as one of the fastest-growing major economies in the world because of high domestic demand.
- The upward revision of India’s 2022-23 GDP forecast is attributed to a strong out turn in the second quarter of FY2023. It has remained highly resilient to deteriorating external environment and its strong macroeconomic fundamentals has placed it in a good stead when compared to other emerging economies.
- The rapid monetary policy tightening in developed economies has caused the outflow of investments and depreciation of the rupee. However, the country remains resilient to global spillovers partly because of its large domestic market and relatively less exposure to international trade flows.
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