World Bank cuts India's FY23 GDP forecast to 7.5% amid rising inflation

This is the second time the World Bank has revised its GDP growth forecast for India in FY23

The World Bank on Tuesday cut its 2022-23 (FY23) real gross domestic product (GDP) growth forecast for India to 7.5 per cent, from 8 per cent, on the back of inflationary pressures, supply-chain pressures, and geopolitical tensions due to Russia’s invasion of Ukraine.

In its latest Global Economic Prospects report, the multilateral institution also lowered its global growth forecast for calendar year 2022 to 2.9 per cent from 4.1 per cent.

“In India, growth is forecast to edge down to 7.5 per cent in FY23, with headwinds from rising inflation, supply-chain disruptions, and geopolitical tensions offsetting buoyancy in the recovery of services