According to World Bank’s latest India Development Update (IDU) released on October 3, “India continues to show resilience against the backdrop of a challenging global environment.” The update further forecasted India’s GDP growth for FY23/24 to be at 6.3%
The India Development Update is a World Bank’s half yearly report on Indian Economy. It is a companion piece to the South Asia Development Update, a twice-a-year World Bank report that analyses economic developments and prospects in the South Asia region and study policy challenges faced by countries.
Despite significant global challenges, the Study observed that India was one of the fastest-growing major economies in FY22/23 at 7.2%. “India’s growth rate was the second highest among G20 countries and almost twice the average for emerging market economies. This resilience was underpinned by robust domestic demand, strong public infrastructure investment and a strengthening financial sector. Bank credit growth increased to 15.8% in the first quarter of FY23/24 compared with 13.3% in the first quarter of FY22/23,” stated the IDU.

Forseeing the global headwinds to continue to persist and intensify due to high global interest rates, geopolitical tensions, and sluggish global demand, the World Bank expected the global economic growth to slow down over the medium term against a background of these combined factors.

Download Nagaland Tribune app on Google Play

“The expected moderation is mainly due to challenging external conditions and waning pent-up demand. However, service sector activity is expected to remain strong with growth of 7.4% and investment growth is also projected to remain robust at 8.9%,” revealed the IDU.
With the adverse weather conditions contributing to a spike in inflation in recent months, the report stated, it is expected to decrease gradually as food prices normalise and government measures help increase the supply of key commodities.