New Delhi: There is shocking news for India that has emerged as the fastest growing economy in the world. Actually, the World Bank has reduced India’s growth forecast by 1 percent. Earlier, the growth forecast for the financial year 2022/23 was projected at 7.5 per cent, but now the World Bank has said that India will grow at 6.5 per cent.
World Bank told the reason for the cut
According to a Reuters report, the World Bank on Thursday revised its growth forecast for India to lower. In this, it has been reduced to 6.5 for the financial year 2022/23. Giving the reason for the cut in the report, it has been said that the economic outlook will be affected by the Russia-Ukraine war and global monetary tightening.
The country’s exports will be affected
The World Bank report on South Asia, released twice a year, said that in this period of uncertainty, there is a possibility of a decrease in private investment. It said that the reduction in global demand will affect the country’s exports.
International situation cited
In the report released ahead of the annual meeting of the International Monetary Fund (IMF) and the World Bank, the bank said that India is stronger than the rest of the world. Significantly, during the last financial year, India’s growth rate was 8.7 percent.
In the report, World Bank Chief Economist Hans Timmer has said that despite being stronger than other countries, we have reduced the estimate for the current financial year, because the international situation is getting worse for India and all other countries. In such a situation, the second half of the calendar year is weak for many countries and will be relatively weak in India too.
India’s praise in the report
Chief Economist Hans Timmer praised India in the report, saying that the Indian economy has performed well with strong growth compared to other countries of South Asia. The pace of the country has also been fast in recovering from Corona. He said that the Indian economy has performed well especially in the service sector.