WB cuts India’s growth for 2022-2023 to 7.5%

Against the backdrop of a global economic deceleration from the fallout of the Russian invasion of Ukraine, the World Bank has cut Indias growth prospects to 7.5 per cent for the current fiscal year — but the nation will still retain its position as the worlds fastest-growing economy.

The Bank’s Global Prospects Report reduced India’s growth by 0.5 per cent from the 8 per cent forecast made in April when the impact of the Ukraine conflict was just beginning to be felt, and 1.2 per cent from the 8.7 per cent forecast in January.

It estimated India’s growth in the last fiscal year at 8.7 per cent.

For the global economy as a whole, the report cut the growth rate by 1.2 per cent — from the 4.1 per cent forecast in January to 2.9 per cent.

World Bank President David Malpass issued a stern warning that the world faces the risk of stagflation — a situation of economic stagnation accompanied by high inflation.

Even if a global recession is averted, the pain of stagflation could persist for several years — unless major supply increases are set in motion, he said.

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