In its assessment of global economic prospects, which was issued on Tuesday, the World Bank predicted that India will see a current account deficit of 5.2% and a rise of 6.3% in GDP. According to the findings of the research, “due to contraction in expenditure on the basis of slower income, it is expected that India’s GDP growth would decelerate to 6.3 percent in FY24.” Even if there are some signs that growth is slowing down, the economy of India is nevertheless resilient, as stated in the flagship report that is published every two years by the World Bank.
On the other hand, in spite of significant challenges posed by the international environment, the study found that India is one of the world’s only economies that is growing at the quickest rate in the entire globe. The study conducted by the World Bank indicates that India’s overall growth is still robust and is anticipated to be 6.9% for the whole year, with a real GDP expanding 7.7% year over year during the first three quarters of the fiscal year 2022–2023.
In the financial year 2024, it is anticipated that the current account deficit would amount to 5.2% of GDP. According to the study, the annual rate of retail inflation in India would decrease to 5.2 percent in FY24 from its current level of 6.6 percent. “The primary factor that contributed to growth was robust domestic demand, which was bolstered by robust consumer spending among higher-income groups as well as better governmental investment.” According to the findings of the study, despite this fact, the rise of low-income groups’ consumer expenditure trailed behind that of their income.
According to the annual book published by the World Bank, it is projected that slower consumer growth and challenging external conditions would place limits on the economic expansion of the Indian nation. According to the research, the withdrawal of financial aid measures connected to the pandemic is anticipated to result in an increase in borrowing rates as well as a slower rise in revenue.