According to a World Bank report released on Tuesday, the prediction for the Indian economy for the current fiscal year has been raised from 6.5% to 6.9% in the organization's India Development Update. One of the main economies with the fastest predicted growth rates is India. According to the report, India might become a desirable alternative investment location as a result of the slowdown in emerging countries. According to the research, annual average retail inflation will be 7.1%. According to the World Bank's India Development Update, China, the US, and the Euro area all have an impact on India. However, it showed that the government would achieve its 6.4% GDP budget deficit goal in 2022–2023. The World Bank predicts that India's GDP growth will moderate to 6.9% in the current fiscal year from 8.7% in FY 21–22. High commodity prices and restrictive monetary policy were mentioned in the report as factors affecting the growth of the nation. Retail inflation based on the consumer price index (CPI), which the RBI primarily considers when determining its monetary policy, is beginning to moderate but has since January of this year remained above the central bank's upper tolerance limit of 6%. Compared to the growth of 13.5% in the first three months of the fiscal year, GDP growth decreased to 6.3% in the second quarter. The World Bank is optimistic, meanwhile, that India will be significantly less affected by the global recession than other emerging economies.

Key Points

• According to a World Bank report released on Tuesday, the prediction for the Indian economy for the current fiscal year has been raised from 6.5% to 6.9% in the organization's India Development Update. 

• Compared to the growth of 13.5% in the first three months of the fiscal year, GDP growth decreased to 6.3% in the second quarter. The World Bank is optimistic, meanwhile, that India will be significantly less affected by the global recession than other emerging economies.

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