New York: The World Bank reduced the gross domestic product (GDP) growth rate forecast of India for the current fiscal year (April 2022 to March 2023). The World Bank updated that the rising inflation, supply chain disruptions and geopolitical tensions will affect the recovery of the Indian economy.
In the Global Economic Prospects released by the bank, it said that the GDP growth is expected to slow further to 7.1% in 2023-24. This is the second time that the World Bank has revised its GDP growth forecast for India in the current fiscal. In April, it had lowered the forecast from 8.7% to 8%. In the last fiscal year, the GDP growth rate was at 8.7%.
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Earlier, global rating agencies too had slashed India’s economic growth forecast. Last month, Moody’s Investors Service trimmed the GDP projection to 8.8% for the calendar year 2022 from 9.1% earlier. S&P Global Ratings too had cut India’s growth projection for 2022-23 to 7.3%, from 7.8% earlier. In March, Fitch had cut India’s growth forecast to 8.5%, from 10.3% and the IMF has lowered the projection to 8.2% from 9%.
The World Bank also reduced the global economic growth forecast for 2022. As per the new report, the world economy will expand 2.9% this year. It will be down from last year’s 5.7% global growth and from the 4.1% it had forecast for this year back in January.
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