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The World Bank has revised its global growth forecast for 2023, stating that the U.S. and other major economies have displayed greater resilience than anticipated. Nevertheless, the Bank has lowered its growth projection for India in the fiscal year 2023/24 (April-March) to 6.3%, marking a 0.3 percentage point downward revision compared to January.
According to the World Bank’s latest Global Economics Prospects report, India’s gross domestic product (GDP) growth forecast for FY24 has been reduced to 6.3%, down from the previous estimate of 6.6% growth. The report attributes this slowdown to factors such as high inflation and increasing borrowing costs limiting private consumption, as well as fiscal consolidation impacting government consumption.
Despite this adjustment in India’s projections for FY24, global brokerages like JP Morgan, Goldman Sachs, and Citi Research have upgraded their forecasts for India’s GDP growth, following the better-than-expected economic growth of 6.1% in the March quarter.
Nonetheless, the World Bank still expects India to maintain its position as the fastest-growing major economy in the current financial year.
