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India’s FY 23 GDP Growth Revised by World Bank

New Delhi: The World Bank has predicted an upward revision of India’s GDP in its latest Development Update. It has been said that India’s GDP can grow at a rate of 6.9 percent in the fiscal year 2022-23 which was earlier capped at 6.5 percent. This is a major decline in gross domestic product (GDP) growth as compared to the previous year amid a deteriorating external environment. However, the World Bank has said that the GDP growth of India is showing “higher resilience” against these “external shocks” and remains in a good position.

According to the estimates of the World Bank, the GDP growth rate is expected to come down to 6.9% in the financial year 2022-23, which is considered a big decline as compared to 8.7% in 2021-22. However, this is an improvement over the October estimate, as the World Bank had projected a GDP growth of 6.5 percent for 2022-23 in October. 

In order to control rising inflation, central banks around the world, including the Reserve Bank of India, are continuously increasing their interest rates. This has a direct impact on the country’s gross domestic product. Along with this, due to the Covid lockdown in China, the supply chain of the whole world has been badly affected. In such a situation, the fear of recession has increased in the whole world.

For the unversed, the Gross Domestic Product of a country means the total value of all goods and services produced in the country in a year. GDP shows the level of economic activity and it shows which sectors have led to growth or decline. The GDP is estimated by the Ministry of Statistics and Program Implementation, Government of India. 

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