World Bank Estimates India’s Growth Rate to be 6.9%, up from 6.5% Previously

The most recent India Development Update from the World Bank projects that real GDP growth in India would be 6.9% in FY22-23 comparing to 8.7% in FY21-’22.

The World Bank reduced India’s growth rate for 2022–2023 from its June prediction by one percentage point, to 6.5%, in its October report.

Government figures indicate that CPI-based retail inflation are beginning to moderate.

GDP Forecast for India

In October, inflation dropped to 6.77 percent from 7.41 percent the previous month.

While rising commodity price prices have widened the current accounts deficit. Over the past ten years, India’s external posture has also significantly improved.

An increase in direct investment from abroad as well as a strong cushion of foreign reserves provide ample funding for the current account deficit.