The World Bank has issued an optimistic outlook for India's economic performance in the fiscal year 2023-24, highlighting the nation's resilience in the face of global challenges. According to the latest projections, India is expected to achieve a GDP growth rate of 6.3%, despite the prevailing headwinds in the global economic landscape.
Furthermore, the World Bank anticipates continued strength in India's service sector, with a robust growth rate of 7.4%. Additionally, the investment sector is poised to maintain its vitality, with an expected growth rate of 8.9% in the ongoing fiscal year.
In its comprehensive India Development Update (IDU), the global financial institution emphasized India's remarkable growth performance in the preceding fiscal year, recording a notable 7.2% growth rate. This growth rate positioned India as one of the fastest-growing major economies worldwide for the fiscal year 2022-23. Remarkably, India's growth rate surpassed that of most G20 nations and nearly doubled the average growth rate observed in emerging market economies.
The report also highlights a significant uptick in India's bank credit growth, reaching 15.8% in the first quarter of the current fiscal year (April-June 2023), compared to 13.3% during the same period in the previous fiscal year.
Auguste Tano Kouame, the World Bank's Country Director in India, acknowledged the persistence of challenging global conditions in the short term. However, he emphasized the potential for India to capitalize on global opportunities by leveraging public spending to stimulate private investments, ultimately fostering a more favorable economic environment.
Moreover, the report offers a positive outlook on India's fiscal metrics. It anticipates a reduction in India's fiscal deficit from 6.4% to 5.9% of GDP. Public debt is expected to stabilize at 83% of GDP, and the current account deficit is projected to narrow to 1.4% of GDP. These developments collectively reflect India's resilience and its ability to navigate complex economic terrain while positioning itself for future global opportunities.
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