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World Bank Modifies India’s GDP Forecast to 6.7% for Financial Year 23 and Inflation to 7%

On Tuesday, December 6, 2022, the World Bank upgraded India’s GDP for the financial year 2022-23 from 6.5% to 6.9%. The update said that the spillovers from Europe, the US, and China have impacted the Indian economy. It also highlighted that the economy shows high resilience to the global shocks and activities happening worldwide. 


World Bank Modifies India’s GDP Forecast to 6.7% for Financial Year 23 and Inflation to 7%


Last month, India’s GDP forecasted by the World Bank was 6.5%; earlier, it was 7.5%. This has been revised again and set to 6.9% for April 2022 to March 2023. 


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The Indian Development Update of the World Bank explained that the Indian economy performed well to global shocks and the second quarter numbers were also better than the forecasted numbers. 


In 2021-22, India’s GDP was 8.7%, whereas it grew 6.7% in the second quarter, from July to September. 


It also said that the government would be able to meet its fiscal deficit of 6.4% of the expected GDP amount in this financial year. However, the inflation rate in the country is expected to stay at 7.1%, which is higher than the target rate specified by the Reserve Bank of India. 


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