World Bank downgrades India's economic growth forecast to 6.5% for FY23

The World Bank on Thursday projected a growth rate of 6.5 per cent for the Indian economy for the fiscal year 2022-23, a drop of one per cent from its previous June 2022 projections, citing deteriorating international environment, PTI reported.

In its latest South Asia Economic Focus released ahead of the annual meeting of the International Monetary Fund and the World Bank, the Bank, however, noted that India is recovering stronger than the rest of the world.

The Indian economy grew by 8.7 per cent in the previous year. "The Indian economy has done well compared to the other countries in South Asia, with relatively strong growth performance... bounced back from the sharp contraction during the first phase of Covid," Hans Timmer, World Bank chief economist for South Asia, told PTI in an interview.
India, he said, has done relatively well with the advantage that it doesn't have a large external debt, there are no problems coming from that side, and that there is prudent monetary policy, he observed.

The Indian economy has done especially well in the services sector and especially service exports.