The World Bank has cut its 2022-23 (FY23) real gross domestic product (GDP) growth forecast for India to 7.5%, from 8%, on the back of inflationary pressures, supply-chain pressures, and geopolitical tensions due to Russia’s invasion of Ukraine in its latest Global Economic Prospects Report.
In its latest report, the multilateral institution also lowered its global growth forecast for calendar year 2022 to 2.9% from 4.1%.

The World Bank said that growth will be supported by fixed investment undertaken by the private sector and by the government, which has introduced incentives and reforms to improve the business climate. This is the second time the World Bank has revised its GDP growth forecast for India in FY23. In April, it had trimmed the forecast from 8.7% to 8%.

Rating agency S&P and the International Monetary Fund were among agencies that had recently cut their FY23 forecast for India. At 7.5%, the World Bank’s forecast is still slightly more bullish than the Reserve Bank of India’s (RBI’s) forecast of 7.2%.

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