In this Oct 11, 2022 file photo, people shop at a crowded market ahead of Diwali, the Hindu festival of lights, in the old quarters of Delhi, India. (ANUSHREE FADNAVIS / REUTERS)
MUMBAI – India's economic growth will slow to 6.6 percent in the next fiscal year from an expected 6.9 percent in the current year, the World Bank said in its latest economic update.
"The slowdown in the global economy and rising uncertainty will weigh on export and investment growth," the World Bank said.
Beyond the fiscal year ending March 2024, growth in India is likely to slip back towards its potential rate of just over 6 percent, the bank added
Increased infrastructure spending and "business facilitation measures" will, however, crowd-in private investment and support the expansion of manufacturing capacity, it added.
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India is expected to be the fastest-growing economy of the seven largest emerging markets and developing economies, it said.
Beyond the fiscal year ending March 2024, growth in India is likely to slip back towards its potential rate of just over 6 percent, the bank added.
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For the South Asian region, growth in 2023 and 2024 is seen at 3.6 percent and 4.6 percent respectively. "This is mainly due to weak growth in Pakistan," the World Bank said.
Globally, the bank is forecasting a sharp, long-lasting slowdown, with global growth declining to 1.7 percent in 2023 from the 3 percent expected just six months ago.