The World Bank on Tuesday slashed India's economic growth forecast for the current fiscal to 7.5 percent because of rising inflation, supply chain disruptions, and geopolitical tensions. This is the second time that the World Bank has revised its GDP growth forecast for India in the current fiscal year 2022-23 (April 2022 to March 2023). In April, it lowered the forecast from 8.7 percent to 8 percent and is now projected at 7.5 percent. In its latest issue of Global Economic Prospects, the World Bank said that India is projected to grow at 7.5 percent in FY 2022/23. The reasons for this are rising inflation, disruption in the supply chain, and a surge in consumption of services from the pandemic.
The effect of increasing the price of fuel for vegetables and edible oil
It added that growth will also be supported by certain investments made by the private sector and the government, which have introduced incentives and reforms to improve the business environment. The bank said the forecast reflects a 1.2 percentage point decline in growth from January's estimate. A rise in prices of all commodities from fuel to vegetables and cooking oil pushed wholesale price-based inflation to a record high of 15.08 percent in April and retail inflation to an almost eight-year high of 7.79 percent. High inflation forced the Reserve Bank to hold an unscheduled meeting last month to raise the benchmark interest rate by 40 basis points to 4.40 percent.
Other agencies also reduced India's economic development estimate
Before the World Bank, global rating agencies also downgraded India's economic growth forecast. Last month, Moody's Investors Service cut its GDP forecast for the calendar year 2022 to 8.8 percent from 9.1 percent, citing high inflation. S&P Global Ratings also lowered India's growth forecast for 2022-23 to 7.3 percent from 7.8 percent. In March, Fitch lowered India's growth forecast from 10.3 percent to 8.5 percent, while the IMF cut the forecast to 8.2 percent from 9 percent. The Asian Development Bank (ADB) pegged India's growth at 7.5 percent, while the RBI in April cut the forecast to 7.2 percent from 7.8 percent amid volatile crude oil prices and supply chain disruptions due to the Russia-Ukraine war.
Also Read: RBI again increased the repo rate by 50 basis points, home, and car loans will be expensive
Tripti Dimri became very famous with her role as 'Zoya Bhabhi' in the film Animal. After this fil
Congress President Election News: The last date to file nominations for the Congress President's
The new strain of the coronavirus has so far affected 257 people, and its effect has been felt in
Auto Taxi Strike: Auto-taxi strike in Delhi-NCR today too, and people's problems will increase
The strike of taxi, auto, and cab drivers will continue in the national capital today as well. In
Shahbaz Sharif has admitted for the first time that it is a matter of shame for him to extend a h
WB SSC Scam: NBU Vice Chancellor arrested in SSC recruitment scam, sent to judicial custody
WB SSC Scam: North Bengal University vice-chancellor Subir Bhattacharya, who was arrested by the
On Congress leader Rahul Gandhi calling the exit polls (Exit Polls 2024) a 'Modi Media Poll' and
There has been a decrease in the cases of coronavirus (Covid-19 Cases in India) in the country. I
Home Minister Amit Shah on Sunday said that the Modi government is leaving no stone unturned to p
Heavy rains have caused flood situations in many states of the country. Life has become hectic. I
