Financial Insights

World Bank slashes India’s GDP growth estimate to 8% for FY23

International lender World Bank has reduced India’s growth prospect for the current fiscal (April 22- March 23) to 8% amid the Ukraine crisis, covid and inflationary pressures.

World Bank said mentioned in its report titled “South Asia Economic Focus Reshaping Norms: A New Way Forward” that India’s GDP growth for the previous fiscal was around 8.3% followed by a 6.6% contraction due to Covid-19.

Supply chain issues, incomplete recovery of labour market and rising inflation were among factors responsible for reducing the growth prospect, the Russia-Ukraine war being the greatest. Inflation recently touched it’s 17-month high of 6.95% in India.

Its report contained updated estimates for growth for all South Asian countries. Pakistan, the second largest economy in the region, saw an upward revision to 4.3% from 3.4%. China saw no change to it’s 5%. Moreover, the growth prospect of the entire region was reduced by 1% to 6.6%.

Asian Development Bank’s estimate is even lower for the country, 7.5%. Going ahead, the World Bank has kept India’s GDP growth estimate to 7.1%.

Highlight by Aman Agarwal.

Related Articles

Back to top button