World Bank sees India's inflation declining, well positioned to cope with global challenges
India, like many other developing nations, is struggling with inflation as a result of a rise in food and fuel prices on a worldwide scale following Russia's invasion of Ukraine earlier this year.
The World Bank revised its growth prediction for India from 6.5% to 6.9% for fiscal 2022 on Tuesday, saying that country is better positioned than many other rising economies to withstand the effects of global headwinds.
The estimate complied with recent government advice. The third-largest economy in Asia, which grew by 6.3% in the quarter ending in July-September, is expected to increase by 6.8 to 7% in the current 2022–23 fiscal year, which ends in March.
India, like many other developing nations, is struggling with inflation as a result of a rise in food and fuel prices on a worldwide scale following Russia's invasion of Ukraine earlier this year. Due to this, the central bank raised its policy interest rates while issuing a warning about the effects of a global economic slowdown.
The World Bank's country director for India, Auguste Tano Kouame, noted during the release of the India Development Update Report that "India's economy has proven extraordinarily robust to the deteriorating external environment."
He claimed that India's economy is resilient to deal with a financial crisis due to strong tax receipts, foreign reserves, and adequate policy flexibility, as well as cautious macroeconomic management.
He warned that a deteriorating global environment will affect India's growth prospects, adding, "However, ongoing vigilance is necessary while adverse global developments remain."
For fiscal 2023–24, which starts in April, the World Bank reduced its growth projection for India from 7% to 6.6%.
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