World Bank lowered its forecast for India's GDP 6.3% from 6.6% 

Los Angeles, April 04, 2023
NRIpress.club/Ramesh/ A.Gary Singh

On April, the World Bank lowered its forecast for India's GDP fiscal year to 6.3% from 6.6% as earlier announced

The World Bank said:

• Rising borrowing costs and slower income growth will weigh on private consumption growth.
• Government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.
• We estimated last fiscal year's growth at 6.9%.

Slower GDP growth can be attributed to aggressive rate hikes by the Reserve Bank of India in order to tame the high inflation levels in the country.

The slowdown resulted from an easing of pent-up pandemic-era demand, continuing weakness in the manufacturing sector, and the fading of the pandemic's low base effect.

These factors, the slowdown in exports and consumer demand has also contributed in bringing down the numbers