World Bank upgrades India’s GDP growth to 6.9% for FY23

In October, it had cut India’s GDP growth forecast to 6.5% from 7.5% earlier. In its India Development Update, the World Bank said the revision was due to higher resilience of the Indian economy to global shocks and better-than-expected second quarter numbers.

India’s gross domestic product (GDP), which grew 8.7% in the previous 2021-22 financial year, expanded 6.3% in July-September 2022-23.

The country however remains affected by spillovers from the US, Euro area and China.

The World Bank saw the government meeting the fiscal deficit target of 6.4% of the GDP in 2022-23. It expected inflation to be 7.1% in the current fiscal year.

The World Bank is one of the rare institutions that has upgraded India’s GDP growth, as opposed to the multiple downgrades seen in the last few weeks. However, its FY23 projections are lower than what most agencies expect, including India’s central bank, RBI which sees the economy growing at 7% for the current financial year.