World Bank reduced India’s growth forecast, growth rate may be 6.3% in FY 2023-24

Ajaypal Singh Banga-World Bank

New Delhi: The World Bank has released an estimate for India’s economic growth rate. There is no good news for India in this. According to the latest World Bank report, India’s economic growth rate for the current financial year 2023-24 will be 6.3 percent. This is 0.3 percentage points less than the previous estimate made by the World Bank in January. Along with this, the World Bank said on Tuesday that India is witnessing an unprecedented pick-up in private consumption and investment. At the same time, the growth of services is also strong.

The World Bank has expressed this estimate in its latest report on Global Economic Prospects. It states that the global growth rate will decline to 2.1 percent in 2023, from 3.1 percent in 2022. It also said that growth in emerging markets and developing economies (EMDEs) other than China is expected to slow down to 2.9 percent this year from 4.1 percent last year. This shows a massive decline in the growth rate.

0.3 percent less than January’s estimate
In the context of India, the World Bank has said in this report that the growth rate in India is expected to slow down to 6.3 percent in the financial year 2023-24. This is 0.3 percentage points less than the January estimate.
The World Bank report said that the reason for the slow growth rate in India is the impact of private consumption due to high inflation and the rising cost of debt. According to the report, the growth rate will pick up some pace in the financial year 2025-26 due to inflation coming to the mid-point of the satisfactory range and reforms. It is also said that among emerging major developing economies (EMDEs), India will continue to be the fastest-growing economy in the world both in terms of aggregate and per capita GDP.

The World Bank has said that growth in India in early 2023 will be lower than the level achieved in the pre-pandemic decade. This is because private investment was affected by high prices and rising costs of debt. However, after a decline in the second half of 2022, the manufacturing sector is set to improve in 2023.

World Bank

Ajay Banga said this
On this occasion, the new President of the World Bank Ajay Banga said that employment is the surest way to reduce poverty and spread prosperity. The slow growth rate of the country means that job creation there will also be difficult. At the same time, he also said that it is also important to note that this is only an estimate of the growth rate, it is not fixed. We also have a chance to change this, but it will require all of us to work together.”

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