World Bank Retains India’s GDP Estimates At 6.3%

New Delhi, Oct 4 (KNN) According to World Banks’ latest projection India will witness its economic growth at 6.3% for FY24, which same as its previous April estimate.

However, it attributed the moderation from FY23’s 7.2% growth to adverse global factors affecting foreign demand and consumption growth.

“The expected moderation is mainly due to challenging external conditions and waning pent-up demand,” as per World Bank’s latest India Development Update.

Nevertheless, 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%, said the report.

Other institutions such as the OECD, Asian Development Bank and Fitch, but slower than the government’s and the Reserve Bank of India had similar estimates.

The World Bank said it expected fiscal consolidation to continue in FY24, with the central government fiscal deficit projected to continue to decline from 6.4% to 5.9% of GDP.

World Bank India director Auguste Tano Kouame said that it was not building in a lot of volatility in fiscal policy due to the upcoming general elections as it was not expecting relaxation in the government’s stated fiscal consolidation path. “I see almost zero risks of fiscal slippages overall despite the elections," he said.  (KNN Bureau)