World Bank Cuts India's Economic Growth Forecast

Amidst rising inflation, the World Bank has reduced India's economic growth projections. The World Bank on Tuesday slashed India's economic growth forecast for the current fiscal to 7.5% in the wake of rising inflation, supply chain disruptions, 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. In April, it lowered the forecast to 8% from 8.7% and is now forecast to be at 7.5%. 

Global Economic Prospects In its most recent issue of global economic prospects, the World Bank said that India is projected to grow at 7.5% in FY23. Rising inflation, supply chain disruptions, and pandemic supply chain disruptions and pandemics are the main causes of increased consumption of services. 

It said growth will also be supported by fixed investments made by the private sector and the government, which have introduced incentives and reforms to improve the business environment. The bank said the forecast shows a 1.2 percentage point drop in growth from January's estimate.