World Bank assessment predicts, India’s GDP would expand by 6.9% in FY23, which is significantly less than the 8.7% growth the nation experienced in the prior fiscal year.
In its most recent Global Economic Prospects Report, the World Bank stated that ‘growth in India is anticipated to fall from 8.7 percent in FY2021/22 to 6.9 percent in FY2022/23, the latter revised lower by 0.6 percentage point since June.’
Among the seven greatest emerging markets and developing economies (EMDEs), India’s GDP will grow at the highest rate. Although India continues to have a better economy than any other nation in the South Asian Region (SAR), the ongoing global financial recession may have an impact on the country’s growth in FY24.
Rising fiscal and current account deficits (CAD), a slowdown in exports, high inflation, and low income growth are a few of the major issues that India must address in the 2018 fiscal year. The World Bank observed that the goods trade deficit in India has more than doubled since 2019, and the current account deficit (CAD) is at a nine-year high of 4.4% of GDP.
The World Bank forecasts India’s FY24 GDP growth to slow to 6.6% before ‘falling back toward its potential pace of little above 6%’ in light of the global concerns.