Indian economy to grow 6.3% – World Bank

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According to a World Bank forecast released on Tuesday, India’s economy will rise 6.3% in the current fiscal year.

According to the research, the country’s resilience is supported by healthy domestic demand, significant public infrastructure investment, and a stronger banking sector.

Despite huge global issues, India was one of the fastest-growing major economies in the 2022-23 fiscal year, according to the India Development Update, a half-yearly study on the Indian economy.

“India’s growth rate was the second highest among G20 countries and almost twice the average for emerging market economies,” according to the report.

“Bank credit growth increased to 15.8% in the first quarter of the financial year of 2023-24 compared with 13.3% in the first quarter of 2022-2023.”

The World Bank economists added that global headwinds related to high interest rates, geopolitical tensions, and sluggish global demand will continue to hold back economic growth across the world.

“In this context, the World Bank projects 6.3% GDP growth in India for FY23-24.” The predicted deceleration is mostly due to challenging external conditions and diminishing pent-up demand, according to the World Bank’s update.

Analysts expected that the country’s service sector activity would continue to rise at a 7.4% annual rate, while investment growth would remain strong at 8.9%.

The Washington-based institution also stated that recent weather conditions have contributed to inflation.

“In July, headline inflation rose to 7.8% due to a rise in food prices such as wheat and rice.” “Inflation is expected to gradually decline as food prices normalise and government measures increase supply of key commodities,” according to the research.