World Bank upgrades India's GDP growth forecast for FY23 to 6.9%
'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'.
New Delhi, Dec 06: Backed by robust economic activities, the World Bank has revised India's 2022-23 GDP growth forecast upward to 6.9 per cent from the earlier estimate of 6.5 per cent.
India's real GDP growth is expected to be at 6.9 per cent in FY22-23 compared to 8.7 per cent in FY21-22, the World Bank said. "India is more resilient now than it was 10 years ago. All steps taken over the past 10 years are helping India navigate the global headwinds," ANI quoted Dhruva Sharma, senior economist at the World Bank, as saying.
According to him, India's economy has rebounded fairly robustly after the contraction that occurred during the pandemic year. "This story of the rebound has been driven largely by robust domestic demand" said Sharma.
The World Bank, in October, had cut India's GDP growth forecast to 6.5 per cent from 7.5 per cent. Now, it has upgraded the projection to 6.9 per cent for 2022-23 (April 2022 -March 2023). The government data claims that CPI-based retail inflation is showing signs of moderation, but still remains above the central bank's upper tolerance level of 6 per cent since January this year.
"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" said Auguste Tano Kouame, World's Bank's Country Director in India. "However, continued vigilance is required as adverse global developments persist," he pointed out.
The India economy is predicted to grow at a slightly lower rate at 6.6 per cent in the 2023-24 fiscal year although challenging external environment will affect the economic outlook through different channels.
The rapid monetary policy tightening in advanced economies had led to large portfolio outflows and depreciation of the Indian Rupee. Also, the high global commodity prices have resulted in a widening of the current account deficit.