World Bank lowers India's forecast for FY24 to 6.3%; inflation to be 5.2%

World Bank lowers India's forecast for FY24 to 6.3%; inflation to be 5.2%

According to a World Bank report, India's growth continues to be resilient amid global uncertainties.

FPJ Web DeskUpdated: Tuesday, April 04, 2023, 12:23 PM IST
article-image
World Bank lowers India's forecast for FY24 to 6.3%; inflation to be 5.2% | Image: Wikipedia (Representative)

World Bank has revised India forecast for this financial year to 6.3 per cent from its earlier 6.6 per cent due to shrinkage in consumption on back of slower income. The World Bank expects inflation to be 5.2 per cent and current account deficit to go down to 2.1 per cent.

According to analysts and economists, a surge of services exports that hit a record high in the quarter ending December will help shield Indian economy from external risks as it is expected that a global slowdown could impact the country's merchandise exports.

India's growth

According to the World Bank report, India's growth continues to be resilient amid global uncertainties and despite some signs of moderation in growth in the second half of the last financial year. It said that manufacturing and construction sectors are concern sectors but the labour market outcomes have improved post-pandemic.

Inflation

The India Development Update, The World Bank India's Biannual flagship publication said that inflation is elevated, but the pressures are moderating as food and fuel prices have moderated. However, Inflation continues to remain above the upper threshold of the Reserve Bank of India's (RBI) target range of 2 to 6 per cent.

Repo rate

The RBI's Monetary Policy Committee has hiked the repo rate by 250 basis points since May 2022. The World Bank also said that the current account deficit also dropped in the third quarter of the last financial year as the commodity prices eased.

RECENT STORIES

EPFO Settles Nearly 50% Of Claims Within 3 Days This Fiscal, Eyes 72-Hour Goal For All Claims

EPFO Settles Nearly 50% Of Claims Within 3 Days This Fiscal, Eyes 72-Hour Goal For All Claims

Plan now, pay smart: why responsible borrowing makes life easier

Plan now, pay smart: why responsible borrowing makes life easier

Oppo K13x 5G Teased To Launch In India Soon, Key Details Revealed

Oppo K13x 5G Teased To Launch In India Soon, Key Details Revealed

Oswal Pumps IPO Opens With Moderate Response, Experts Suggest Long-Term Investment Based On Strong...

Oswal Pumps IPO Opens With Moderate Response, Experts Suggest Long-Term Investment Based On Strong...

BSE Invites Auction Offers For Settlement DR-650, Demat Auction Scheduled For June 13

BSE Invites Auction Offers For Settlement DR-650, Demat Auction Scheduled For June 13