Business / World Bank report says Indian economy to grow 6.9 percent in FY23 up from 6.5 percent estimate

Zoom News : Dec 06, 2022, 01:36 PM
GDP: After a long time, the news of relief has come for India on the economic front. The World Bank has increased India's GDP growth forecast for the current financial year 2022-23 to 6.9 percent. Earlier this estimate was 6.5 percent. In the latest report related to India released by the World Bank on Tuesday, it was said that the impact of developments in America, Euro area and China is being seen on India as well. Apart from this, the World Bank has reduced the GDP figure from 7 percent to 6.6 percent for the next financial year.

No relief on retail inflation

However, amidst the global situation, the World Bank has expressed confidence that the government will achieve the fiscal deficit target of 6.4 percent for the current financial year. On the other hand, no relief has been given in the World Bank report regarding retail inflation. The World Bank estimates that retail inflation will remain at 7.1 percent in the financial year 2022-23. Let us tell you that since January 2022, inflation has remained above the satisfactory level of the government.

Interest rate hiked by 190 basis points

Earlier, it was told by the government that Asia's fourth largest economy grew at a rate of 6.3 percent between July and September in the July-September quarter. The GDP figure is likely to be 6.8-7 percent during the entire financial year. In order to control inflation, RBI has increased the interest rate by 190 basis points since May. Despite this, a slight decline has been registered in the inflation rate.

The World Bank also expressed the hope that the impact of the economic slowdown on India will be less as compared to other economies of the world. Economist of World Bank Dhuvar Sharma said that he is not worried about India's debt stability. There has been a decline in public debt.