World Bank Predicts India’s Economic Growth to Slow to 6.9% in FY23

World Bank Predicts India’s Economic Growth to Slow to 6.9% in FY23: The World Bank’s report has predicted that India’s economic growth will slow to 6.9% in the Financial Year 2023 as compared to the 8.7% growth in the previous financial year. Here, in the given post we have discussed all the key highlights covered in the report of the World Bank.

World Bank Predicts India’s Economic Growth to Slow to 6.9% in FY23: Key Points

• In the latest Global Economic Prospects Report, World Bank said that the growth in India is projected to slow down from 8.7 percent in the financial year 2021-2022 to 6.9 percent in the financial year 2022-2023.
• The decline in economic growth will be 0.6 percentage points lower since June.
• It is also stated in the report that among the seven largest emerging markets and developing economies(EMDEs), India will be the fastest-growing economy.
• As the entire world is facing financial slowdown, India still remains economically stronger in comparison to all other countries in the South Asian Region (SAR).
• The growth of India is likely to get sufferred in the financial year 2024 due to the present global financial deceleration.
• The key challenges that India will have to confront in the upcoming financial year are as follows:

(a) Elevated Inflation

(b)Rising Fiscal and Current Account Deficit (CAD)

(c)Downtrend in exports

(d)Low-Income Growth

• The goods trade deficit of India has become more than doubled since 2019 as reported by World Bank.
• Current Account Deficit (CAD) is 4.4% of the GDP and it remains the highest if we consider the last 9 years.
• Keeping in view the upcoming challenges, World Bank noted that the economic Growth is expected to slow to 6.6 per cent in Financial Year 2024 before returning to its potential rate of just above 6 per cent.
• India has handled the economic crisis and slow down in a very proper manner that the neighouring countries as well as the western nations are thinking about it.
• According to the World Bank Report, policy tightening, high inflation, worsening financial conditions, and continued disruptions from Russia’s invasion of Ukraine are the factors responsible for global economic growth decline.
• Six months ago the world bank predicted the global growth to be 3 percent in 2023 and now which has declined up to 1.7 percent.

World Bank

President: David Malpass

Headquarters: Washington, D.C. United States

Founded In: July 1944, Bretton Woods, New Hampshire, United States

Founders: John Maynard Keynes, Harry Dexter White

Parent Organization: World Bank Group