New Delhi: The World Bank has cut India’s economic growth forecast for the financial year 2023 by one percent. The World Bank on Thursday projected a growth rate of 6.5 percent for the Indian economy, which is one percent lower than its previous estimate for June 2022. The World Bank has cited the deteriorating international environment to cut India’s economic growth.
Releasing the latest South Asia Economic Focus ahead of the annual meeting of the International Monetary Fund and the World Bank, the World Bank said that India is getting stronger than the rest of the world. The Indian economy grew at a growth rate of 8.7 percent last year.
India’s performance is better in South Asian countries
Hans Timmer, World Bank Chief Economist for South Asia, said, “The Indian economy has performed well compared to other countries in South Asia. After emerging from the corona epidemic, there has been a rapid boom in the Indian economy.
He said that India does not have any huge foreign debt. 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. Hans Timmer said, “Despite this, we have reduced the estimate for the current fiscal year because the international environment is deteriorating for India and all other countries.” He said that the second half of the calendar year is weak for many countries. And in India too it will be relatively weak.
Asian Development Bank has also reduced GDP estimates
Earlier, the Asian Development Bank (ADB) had reduced the growth forecast for the Indian economy to 7 percent for the financial year 2022-23 in view of rising inflationary pressures and tight monetary policies.
The Indian economy grew at a pace of 13.5 percent in the first quarter of the current financial year. At the same time, the rating agency ICRA has retained the economic growth rate estimate for the current financial year at 7.2 percent.
