New Delhi: The World Bank reduced the growth rate of India for the fiscal year 2022-23. In the South Asia Economic Focus released by the World Bank, it has predicted a growth rate of 6.5% for India. This is lower by 1% from its previous June 2022 projections. The South Asia Economic Focus was released ahead of the annual meeting of the International Monetary Fund and the World Bank.
The Indian economy grew by 8.7% in the previous year. The World Bank cited deteriorating international environment for the downfall of Indian economy. It also said that the country is recovering stronger than the rest of the world.
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‘The Indian economy has done well compared to the other countries in South Asia, with relatively strong growth performance… bounced back from the sharp contraction during the first phase of Covid. But we have downgraded the forecast for the fiscal year that just started and that is largely because the international environment is deteriorating for India and for all countries. We see kind of an inflection point in the middle of this year, and first signs of slowing across the world,’ said Hans Timmer, World Bank Chief Economist for South Asia.
This is the third time the World Bank revised its GDP growth forecast for India in FY23. In June, it had slashed its forecast to 7.5%. Earlier in April, it had trimmed the forecast from 8.7% to 8%.Meanwhile, a survey released by the World Bank updated that around 5.6 crore Indians slipped into poverty in 2020 due to Covid-19 pandemic.