World Bank Upgrades India's GDP Growth Forecast To 6.9% For FY23

The World Bank on Tuesday revised upwards its GDP growth forecast for India to 6.9% for 2022-23, saying the economy was showing higher resilience to global shocks.

Dhruv Sharma, a senior economist at the World Bank, said during a briefing in New Delhi on Tuesday that the uptick is largely because recent GDP data showed more robust domestic activity than expected.

He said India is better-positioned than its peers to weather external financial shocks this fiscal year, which ends in March.

In October, it had cut India's GDP growth forecast to 6.5% from 7.5% earlier. Now, it has upgraded the projection to 6.9% for 2022-23 (April 2022 -March 2023).

India's gross domestic product (GDP), which grew 8.7% in previous 2021-22 financial year, expanded 6.3% in July-September 2022-23.

The country however remains affected by spillovers from the US, Euro area and China.

The World Bank saw the government meeting the fiscal deficit target of 6.4% of the GDP in 2022-23.

World Bank expects the inflation at 7.1% in current fiscal year.

(With inputs from Bloomberg)