New Delhi, Oct 6 (FN Agency) Amid recession fears in major advanced economies, the World Bank on Thursday cut India’s gross domestic product (GDP) growth forecast for financial year 2022-23 to 6.5% from its earlier estimate of 7.5%. The global financial institution warned that spillovers from the Russia-Ukraine war and global monetary policy tightening will continue to weigh on India’s economic outlook.
“The spillovers from the Russia-Ukraine war and global monetary policy tightening will continue to weigh on India’s economic outlook: elevated inflation on the back of higher prices of key commodities and rising borrowing costs will affect domestic demand, particularly private consumption in FY2023/24, while slowing global growth will inhibit growth in demand for India’s exports,” it said in its latest update. The World Bank report further noted that private investment growth is likely to be dampened by heightened uncertainty and higher financing costs. The lowering of India’s growth estimate by the World Bank has come close on the heels of the Reserve Bank of India (RBI) also slashing its forecast for the current financial year to 7% from 7.2% earlier.