The World Bank predicted on Tuesday that India’s economy will expand by 6.9% in the current fiscal year and that it is in a good position to handle external challenges.
The government reported last week that the gross domestic product growth for the entire fiscal year is anticipated to be 6.8–7%. Asia’s fourth-largest economy grew by 6.3% in the quarter between July and September.
The World Bank revised its 6.5% growth prediction for India for the current fiscal year to 6.9%. The Bank reduced its forecast for the upcoming fiscal year from 7% to 6.6%.
Commodity price increases and tightening monetary policies by central banks around the world have hurt India, just like they do its other global competitors.
According to the research, retail inflation will average 7.1% this year, but it also cautions that the decline in commodity prices may lessen inflationary pressures.
India’s annual retail inflation rate dropped to 6.77% in October, a three-month low, but some experts think it could still be two years before it reaches 4%, the middle of the Reserve Bank of India’s goal range.
However, better-than-expected U.S. data have renewed concerns about how high the Federal Reserve would raise interest rates, and the Indian rupee is predicted to open Tuesday against the dollar weaker.