The Indian economy has shown resilience in the face of a challenging external environment, with the World Bank forecasting 6.9 per cent growth in 2022-23, up from 6.5 per cent in October.

However, the multilateral agency reduced its India growth forecast for the coming fiscal year to 6.6 per cent from 7 per cent previously.

In the face of a challenging external environment, the Indian economy has shown resilience, with the World Bank forecasting 6.9 per cent growth in 2022-23, up from 6.5 per cent in October.

The multilateral agency, however, reduced its India growth forecast for the coming fiscal year to 6.6 per cent from 7 per cent previously.

“India’s economy has been remarkably resilient to the deteriorating external environment, and strong macroeconomic fundamentals have placed it in good stead compared to other emerging market economies,” the statement said quoting Auguste Tano Kouame, World Bank’s Country Director in India. “However, continued vigilance is required as adverse global developments persist,” said Kouame.

Despite these challenges, India is expected to post strong GDP growth and remain one of the world’s fastest growing major economies, according to the statement.

The World Bank has raised its 2022-23 GDP forecast to 6.9 per cent from 6.5 per cent (in October 2022), citing a strong performance in India in the September quarter of the fiscal year 2022-23.

According to the World Bank, rapid monetary policy tightening in advanced economies has already resulted in large portfolio outflows and rupee depreciation, while high global commodity prices have caused the current account deficit to widen.

However, when compared to other emerging markets, India’s economy is relatively immune to global spillovers, according to the statement. This is due in part to India’s large domestic market and its low exposure to international trade flows.

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