World Bank raises growth forecast to 6.9% from 6.5% – Times of India

NEW DELHI: The World Bank on Tuesday revised upwards its GDP growth forecast for India to 6. 9% for FY23, saying the economy was showing higher resilience to global shocks.
In its India Development Update, the World Bank said the revision was due to higher resilience of the Indian economy to global shocks and better-than-expected second quarter numbers. India’s economy grew at 6. 3% in September quarter 2022-23 as compared to 13. 5% in the June quarter, mainly on account of contraction in output of manufacturing and mining sectors.
This is the first upgrade of India’s growth forecast by any international agency amid the global turmoil. In October,the World Bank had cut India’s GDP growth forecast to 6. 5% from 7. 5%. The report, titled ‘Navigating the Storm’, said while the deteriorating external environment will weigh on India’s growth prospects, the economy is relatively well positioned to weather global spillovers compared to most other emerging markets.
Impact of a tightening global monetary policy cycle, slowing global growth and elevated commodity prices will mean that the Indian economy will experience lower growth in FY23 compared to FY22 (8. 7%), it said. Despite these challenges, it said, the update expects India to register a strong GDP growth and remain one of the fastest-growing major economies in the world, due to a robust domestic demand.

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