World Bank downgrades India’s GDP growth estimate from 6.5% to 6.3% for 2023-24

India’s GDP is anticipated to slide down to 6.3 per cent in 2023-24 as towards its earlier estimate of 6.6 per cent, primarily due to consumption falling owing to increased borrowing prices, in accordance to a World Bank report launched on Tuesday.

Since May final 12 months, the Reserve Bank of India has been mountaineering rates of interest to management inflation.

In its “India Development Update”, the World Bank mentioned that financial growth is probably going to be impacted due to sluggish consumption growth, coupled with difficult exterior components.

“Rising borrowing prices and slower earnings growth will weigh on personal consumption growth and authorities consumption is projected to develop at a slower tempo due to the withdrawal of pandemic-related fiscal assist measures,” it mentioned.

According to the report, India’s present account deficit can also be seemingly to come down to 2.1 per cent in 2023-24, as towards 3 per cent in 2022-23.

On inflation, the World Bank report mentioned that it’s seemingly to ease to 5.2 per cent within the present fiscal as towards 6.6 per cent within the earlier fiscal.

(With inputs from IANS)