World Bank Upgrades India’s GDP Growth Forecast To 6.9 Per Cent For FY23

The World Bank said that the government on course to meet fiscal deficit target of 6.4 per cent

India's Gross Domestic Product (GDP) growth is expected to grow 6.9 per cent in the current fiscal year (FY23), the World Bank said in its latest report on Tuesday. According to the World Bank report, India is projected to be one of the fastest-growing major economies. Slowdown in emerging economies could also position India as an attractive alternate investment destination.

India is affected by spillovers from US, Euro area, and China, the update mentioned, according to the news agency PTI. On the other hand, inflation is expected to be 7.1 per cent in FY23. The World Bank also said that the Indian government on course to meet fiscal deficit target of 6.4 per cent.

According to a tweet by ANI, Dhruv Sharma, senior economist, The World Bank, said, "Rupee has depreciated by just about 10 per cent over the course of this year. India has not fared that badly compared to other emerging markets." He also added that 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."

India's gross domestic product (GDP) grew at 6.3 per cent year-on-year (YoY) in the second quarter (Q2) of the current financial year (Q2FY23), according to the latest data released by the the Ministry of Statistics and Programme Implementation. The GDP had expanded by 8.4 per cent in the July-September quarter of 2021-22, according to data released by the National Statistical Office (NSO).

Meanwhile, the Reserve Bank's rate-setting panel (MPC) has started deliberations for the next round of monetary policy amid expectations of a moderate interest rate hike of 25-35 basis points as inflation has started showing signs of easing and economic growth tapering.

RBI governor Shaktikanta Das would announce the bi-monthly monetary policy on Wednesday at the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

The GDP growth in the second quarter of the fiscal slowed to 6.3 per cent as against a growth of 13.5 per cent in the preceding three months reported PTI.

The central bank has been tasked by the government to ensure that retail inflation remains at 4 per cent with a margin of 2 per cent. However, it failed to keep the inflation rate below six per cent for three consecutive quarters beginning January 2022. So, it had to submit a report to the government detailing reasons for the failure to contain prices and remedial steps to rein in the price rise.