The growth rate of the Indian economy is expected to be limited to 8.3 percent in the current financial year, the World Bank said in a report on Wednesday.
According to the first estimate released by the National Statistics Office (NSO) last Friday, the Indian economy is expected to grow at 9.2 percent in the current financial year. She predicts that the economy will overtake pre-Corona levels, especially as a result of significant improvements in performance in agriculture, mining, and manufacturing. However, the economy is expected to grow at 8.3 percent in the current financial year, unchanged from the World Bank's June quarter growth forecast. According to the latest World Economic Outlook report released by the World Bank, the economy is projected to grow at 8.7 percent in 2022-23 and 6.8 percent in 2023-24.
The growth in private investment, especially the Productivity Incentive Scheme (PLI) and infrastructure investment, is likely to have a positive impact on the economy in the coming financial years. Ongoing structural reforms, the better-than-expected performance of the financial sector, and planned measures to address financial sector challenges will support growth, the report said.
The report said that in the major economies of South Asia, consumer-led retail inflation has been higher than the target set by central banks since the second half of 2019. However, measures taken to reduce supply constraints related to the corona in India and lack of demand have helped keep inflation at between 2 and 6 percent since mid-2021.
According to the report, given the current state of affairs in India, the economy has recovered from the shock of the second wave of the Corona and reached the pre-Corona level. The report also said that increasing global omicron infection, rising inflation, debt, and income inequality could jeopardize the recovery of emerging and developing economies, indicating that the global economy is heading for a recession again.