World Bank in its latest report on Tuesday said that India’ economy is expected to slow in the current fiscal to 6.3 per cent on the back of shrinkage in consumption due to slower income growth.
India’s inflation, according to the report India Development Update, to moderate from 6.6 per cent to 5.2 per cent in the current fiscal year.
It also pointed out that the Current Account Deficit (CAD) is expected to be 5.2 per cent in FY24, amid easing global commodity prices and moderation in domestic demand.
The Economic Survey had projected growth of 6.5 per cent for the current fiscal while the RBI’s latest projection pegs growth for FY24 at 6.4 per cent.
“The Reserve Bank of India (RBI) has withdrawn accommodative measures to rein in inflation by hiking the policy interest rate. India’s financial sector also remains strong, buoyed by improvements in asset quality and robust private – sector credit growth,” the report stated.
“The actual outcome for real GDP growth will probably lie in the range of 6.0 per cent to 6.8 per cent, depending on the trajectory of economic and political developments globally,” the survey had said.
CRISIL has pegged India’s growth in FY24 at 6 per cent due to a challenging global macroeconomic environment.
Augusto Tano Kouame, World Bank’s country director in India, said, “The Indian economy continues to show strong resilience to external shocks.”
