World Bank maintains India's GDP growth at 6.3 % for FY24

In the previous fiscal (2022-23), the country's economy grew at 7.2%, according to government data.

The World Bank on Tuesday projected that India's economy will grow at 6.3% in the ongoing fiscal year (2023-24), maintaining a projection that it first gave in April, months after its December 2022 estimate of 6.6% for FY23-24.

World Bank maintains India current fiscal year growth forecast at 6.3%(HT File Photo)

India's FY 2022-23 growth of 7.2% shows that the country ‘continues to show resilience against the backdrop of a challenging global environment,’ the World Bank said in a press release, highlighting the findings of its flagship half-yearly India Development Update (IDU) report on the nation's economy.

“The IDU expects that global headwinds will continue to persist and intensify due to high global interest rates, geopolitical tensions, and sluggish global demand. As a result, global economic growth is also set to slow down over the medium term against a background of these combined factors,” the Washington D.C.-headquartered body noted in its statement.

“In this context,” the organisation added, “the World Bank forecasts India's GDP growth for FY23/24 to be at 6.3%.”

This expected moderation is primarily due to ‘challenging external conditions and pent-up demand,’ the World Bank said.

It also warned, quoting Auguste Tano Kouame, its Country Director for India, that in the short-term, of challenges due to an ‘adverse global environment.’

“Tapping public spending that crowds in more private investments will create more favourable conditions for India to seize global opportunities in the future and thus achieve a higher growth,” the release quoted Kouame as saying.