The world bank has cut India’s economic growth forecast by 6.5 percent citing global risks by a full percentage point.
India’s gross domestic product is likely to grow 6.5 percent by March 2023, the Washington-based institution said in its South Asia Economic Focus report released on October 6.
That revision, along with a 1.4 percent of point cut to crisis-ridden Sri Lanka’s growth outlook, pulled the region’s 2022 forecast down to 5.8 percent from 6.8 percent seen in June, even though the outlook for five other countries in the region was upgraded.
According to a report published in the Economic Times, the view on India is sharply lower than the estimate of the Reserve Bank of India, which cut its forecast last month to 7 percent from 7.2 percent.
The World Bank said that some nations were coping better than others. By this, it referred to the resilience of India’s exports and services sectors.
While India’s economy posted double-digit growth in the April-June quarter, the RBI’s aggressive monetary policy tightening is seen as a risk to demand in an economy where consumption accounts for some 55 percent of growth.
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