A decrease in the projected growth rate by one percent; India’s economy to grow at 6.5 percent: World Bank
PTI, Washington: The World Bank has revised down India’s economic growth forecast to 6.5 percent for the fiscal year 2022-23. It has now been reduced by a full one percent from the forecast expressed in June 2022. The economy is likely to remain slower than expected due to the Russia-Ukraine war, heightened global uncertainty, supply chain disruptions and rising inflation. The World Bank on Thursday announced the downgraded forecast as the planned economic reforms did not see the expected pace.
Although the World Bank has revised its forecast for the growth rate of the Indian economy, the Indian economy is recovering faster than the rest of the world, the bank has stated in this report on the economy of the South Asian region. In the last financial year, India’s economy maintained a growth rate of 8.7 percent. The Indian economy has performed well compared to other countries in South Asia. After the first wave of Corona, the economy recovered rapidly due to strong economic policies. Due to the global crisis, the mountain of debt is increasing on the countries of the world. However, World Bank’s Chief Economist for South Asia Hans Timmer expressed the opinion that India’s situation is satisfactory in comparison.
After the Corona period, the Indian service sector has performed well, especially on the export front. However, India’s growth rate has been reduced due to the current adverse global environment. Globally, the central banks of the major countries have announced an increase in interest rates. As a result, growth in the real economy of high-income countries has slowed. This naturally affects developing countries like India. High interest rate hikes and depreciating currency have dampened the flow of foreign investment in the country, said Timmer.
The wheat-export ban decision is suicidal
India has set an exemplary example to the world by using digital solutions to extend social safety nets to the grassroots. However, decisions such as the export ban on wheat and high taxation on rice exports are unconvincing, the World Bank said in the report. While these decisions may seem logical at the moment as a reaction to high prices, they will be suicidal in the long run, the bank said.
5.6 crore people below the poverty line in India in 2020
Washington: The number of people living below the poverty line in India has increased by 5.6 crore in 2020, the World Bank has said in a report. The report ‘Poverty and Shared Prosperity 2022: The Road to Repair’ highlights the solutions to poverty alleviation.