New Delhi: The World Bank on Tuesday revised its India’s growth forecast for the Financial Year 2023-24 to 6.3% from earlier 6.6% (projected in Dec 2022) but said that the economy remains resilient and slated to grow the fastest in the world.
The World Bank said that India will continue to remain the fastest growing economy in the world, though its growth would be constrained by slower consumption & challenging circumstances.
“India’s GDP growth is likely to moderate to 6.3 pc in FY24 due to shrinkage in consumption on the back of slower income,” a World Bank report said.
According to report, India’s current account deficit is pegged to hover near 5.2% for the year 2024. According to the World Bank report, the retail inflation will also reduce to 5% levels from 6.% in the FY24.
“Rising borrowing costs and slower income growth will weigh on private consumption growth, and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures,” the report said.
Auguste Tano Kouame, World Bank’s Country Director in India, told a news channel that India is aiming to become a developed economy by 2047 but that it would require to grow at 8%.
He took note of the country’s rapid strides in a couple of sectors including green finance and hoped that it would contribute to growth story. It also pointed out key areas of concerns which could turn to be potential spoilers.
‘Laggard sectors’ Manufacturing & construction sector remained some key concern areas as they shed lot of jobs during the Covid-19 pandemic and are yet to recover from the unprecedented jolt.
