World Bank cuts India’s GDP growth forecast to 6.3% in FY24


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India’s GDP is expected to moderate to 6.3%, as against earlier estimate of 6.6%, due to moderation in consumption in FY24, the World Bank said in a report on Tuesday.

Growth is likely to be constrained by slower consumption growth and challenging external conditions, the World Bank said in its India Development Update.

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“Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures,” it said.

The report projects Current Account Deficit to moderate to 2.1% in FY24, as against 3% in the current financial year.

With regard to inflation, the World Bank Report expects it to ease to 5.2%, against 6.6% in the current fiscal.

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