World Bank Forecasts 6.9% Growth For India's Economy In FY23.

The World Bank increased its projection of 6.5% growth made in October to 6.9% growth in 2022–2023, saying that the Indian economy has already shown resilience despite a challenging external environment.

Given the relative resilience of the Indian economy to external headwinds and the quarter's "strong outturn," the World Bank raised its forecast for India's gross domestic product (GDP) growth in the current fiscal year (FY23) from 6.5 to 6.9 percent.

This follows a string of earlier growth downgrades by banks and multilateral institutions. India's FY23 GDP prediction has already been cut by the World Bank from 7.5 percent in October to 6.5 percent.

Auguste Kouame, the country director for the World Bank in India, stated in the agency's most recent India Development Update on Tuesday that "India's economy has been remarkably resilient to the deteriorating external environment, and strong macroeconomic fundamentals have placed it in good stead compared to other emerging market economies,"

India is insulated from global spillovers due to its large domestic market, which is comparatively less exposed to global trade flows. According to the report, India's external position has also improved significantly over the past decade.

It added that "Policy reforms and prudent regulatory measures have also played a key role in developing resilience in the economy," 

According to official figures released last week, India's GDP increased 6.3% in the third quarter of this year, slower than the 8.4% growth recorded in the same period last year, as factory output dropped and the base effect diminished. It exceeded analyst projections, though, and the World Bank cited this as one of the factors in its most recent growth upgrade.