World Bank Cuts India's Growth Rate Forecast To 6.5%

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World Bank Cuts India's Growth Rate Forecast To 6.5%
07 Oct 2022
6 min read

News Synopsis

This is the third time the World Bank has revised its GDP growth forecast for India in FY23. In June, it slashed its FY23 GDP growth forecast for India to 7.5%. Earlier in April, it had trimmed the forecast from 8.7% to 8%.  According to the latest estimates, the Indian economy will grow at 6.5 percent in the fiscal year 2022-23, which is one percent lower than the June 2022 estimate.

In a report released ahead of the annual meeting of the International Monetary Fund (IMF) and the World Bank, the bank said that India is comparatively stronger than the rest of the world.

Hans Timmer, Chief Economist of the World Bank for South Asia, told PTI, "The Indian economy has performed well compared to other countries in South Asia by registering strong growth from a sharp contraction in the first phase of Kovid. Strong comeback.

India does not have a big foreign debt, he claimed. On this side, it has no problem, and its monetary policy has been prudent. The Indian economy has performed well in the services sector in particular and service exports in particular.

"Despite this, we have downgraded the estimate for the current financial year, as the international environment for India and all other countries is deteriorating," he said. He said the second half of the calendar year is weak for many countries and will remain relatively weak in India as well.

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