World Bank estimated the growth rate of Indian economy at 6.5% in the FY 2022-23

Washington: The World Bank has estimated the growth rate of the Indian economy at 6.5 percent for the financial year 2022-23. In its latest South Asia Economic Focus released ahead of the annual meeting of the International Monetary Fund and the World Bank, it noted that India is recovering faster than the rest of the world. In the previous year, India’s economy had grown by 8.7 percent. World Bank estimated the growth rate of Indian economy at 6.5% in the FY 2022-23.

The Indian economy has fared well compared to other South Asian countries with relatively strong growth performance. World Bank Chief Economist for South Asia Hans Timmer said in an interview to PTI that India has recovered from the initial shock of Covid. World Bank estimated the growth rate of Indian economy at 6.5% in the FY 2022-23.

India is relatively well off with the advantage of not having much external debt. There will be no problems from that side. “There is a prudent monetary policy here,” he said. The Indian economy has performed particularly well in the service sector and service exports.

But we downgraded the forecast for the financial year that just started. The international environment is deteriorating mostly for India and for all countries. We will see an inflection point of sorts in the middle of this year. “We are seeing the first signs of a slowdown around the world,” he said.

The second half of the calendar year is weak in many countries and relatively weak in India as well. This is mainly due to two factors. One is slowing real economic growth in high-income countries. Another global tightening of monetary policy tightens financial markets.

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This leads to capital outflows in many developing countries, but it also increases interest rates and uncertainty in developing countries, which has a negative impact on investment, Timmer said. So, India has done relatively well. It is not as weak as some other countries, he said.