The Indian economy is more resilient now than it was 10 years ago, senior World Bank economist Dhruv Sharma said Tuesday after the global financial body revised its FY23 GDP forecast for the country. He said India had not 'fared that badly' as compared with other emerging markets and noted 'the rupee has depreciated by just about 10% this year'.
"India is more resilient now than it was 10 years ago. All steps taken over the past 10 years are helping India navigate the global headwinds," Sharma was quoted by news agency ANI.
He credited 'robust domestic demand' with helping revive the economy after it (and others worldwide) were battered by the pandemic and, more recently, the war in Ukraine.
"India's economy has rebounded fairly robustly following the contraction during the pandemic year... has been driven largely by robust domestic demand," he said.
Sharma also dismissed any concern about India's debt sustainability, saying the World Bank had no such fears and that the country - affected by the global rise in commodity prices and tightening monetary policies - had been far less affected than its peers.
The World Bank's India director - Auguste Tano Kouamé - also praised the Narendra Modi government and said, "India is very ambitious. The government has done a number of things to make the economy resilient and is putting a lot of effort to make the economy dynamic."
{{/usCountry}}The World Bank's India director - Auguste Tano Kouamé - also praised the Narendra Modi government and said, "India is very ambitious. The government has done a number of things to make the economy resilient and is putting a lot of effort to make the economy dynamic."
{{/usCountry}}Earlier today the World Bank said it expected the Indian economy to grow 6.9 per cent in FY23 - up from its October estimate of 6.5 per cent - due to 'robust economic activities'.
However, expectations for the next fiscal year were trimmed from seven to 6.6 per cent.
Last week the government said GDP for the full fiscal year is likely to be between 6.8 and seven per cent. Annual retail inflation figures eased to a three-month low of 6.77 per cent in October, but that is still above the Reserve Bank of India's upper limit of six per cent.
With input from ANI