World Bank: India’s economy to slow in FY24, GDP growth seen at 6.3%: SLOWER CONSUMPTION growth and challenging external conditions has prompted the World Bank to pare the country’s growth rate for 2023-24 to 6.3 per cent in its latest India Development Update compared with the earlier estimate of 6.6 per cent.
“Rising borrowing costs and slower income growth will weigh on private consumption growth, and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures,” the update released Tuesday said.
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The report estimates India’s inflation to moderate from 6.6% to 5.5% in the current fiscal. The Current Account Deficit (CAD) is expected to be 5.2% in FY24. The Economic Survey had projected a growth of 6.5% for the current fiscal while RBI’s latest projection pegs growth for FY24 at 6.4%.
