Is India slipping in their GDP growth? | World Bank prediction on Indian economy Growth.

 

Is India slipping in their GDP growth? 

The World Bank has released projections for India's economic growth rate. However, it is not good news for India. The World Bank in its latest report has reduced India's economic growth forecast for the current financial year 2023-24 to 6.3%. That's 0.3 percentage points lower than the World Bank's previous estimate in January.

Let's talk further, about what the World Bank has to say and on what basis India's GDP estimate has been reduced so much. In the recent NSO report, India's real GDP growth was seen as more than expected in the fourth quarter of FY 2023 and the entire fiscal. 

Since then it was being speculated that the Reserve Bank of India may upgrade its estimates of the country's GDP for FY 24 after the MPC meeting on June 8. But even before the RBI's estimate was upgraded, the World Bank's estimate surprised the Government of India and the RBI. The World Bank has reduced India's GDP estimate in the current financial year 2024 slightly less than before. 

The World Bank has predicted a decline of 0.3% in its earlier estimate and said that India's GDP could be 6.3% in the current financial year. Earlier in January, the World Bank had estimated that India's GDP could be 6.6%. Talking about India's economy in its report, the World Bank said that there is a tremendous struggle in personal consumption and investment in India. 

Apart from this, a boom is also being seen in the services. In such a situation, looking at the world's global economy, India's growth is not that bad. The World Bank has released its latest report on the economic prospects of the world, in which the economic growth of the world including India has been estimated, in which the global economic growth is seen to be more limited. 

The World Bank has reduced the global economic growth rate for the year 2023 to 2.1%, while the economic growth for the year 2022 was seen at 3.1%. This means that the global economic growth this year will be 1% less than last year, which is a big setback. On the other hand, talking about the world's second-largest economy China has been estimated to remain at 2.9% this year as against last year's 4.1% growth. 

Let us tell you that recently the entry of recession has been officially done in Germany and slowly it is spreading its foot all over Europe. On the other hand, according to the report of the World Bank, the major reason for the decrease in India's economic growth forecast is the impact on private consumption due to rising inflation and costlier loans. 

According to the report, due to low inflation and reforms, there may be a rise in the growth rate in the financial year 2025-26. It has also been mentioned in the report that despite all these projections, India will remain the fastest-growing economy in the world.

According to Ajay Banga, the newly appointed President of the Indian origin of the World Bank, reducing poverty and happiness and prosperity can be brought only based on employment. The low growth rate means that there will be difficulty in generating employment. He further said that the economic growth forecast is not set in stone.

It can also be changed, but for this, we will have to work together and try to increase it. Let us tell you that Ajay Banga of Indian origin has taken over as the President of the World Bank on Friday itself. If you have liked the information given by us, then do comment.