World Bank cuts India's growth forecast to 6.3% in FY24

New Delhi: India's GDP is expected to moderate to 6.3 percent, as compared to its earlier estimate of 6.6 percent, due to moderation in consumption in FY24, said the World Bank in a report on Tuesday. Growth is likely to be constrained by slower consumption growth and challenging external conditions, the World Bank said in its India Development Update.

'Govt consumption is projected to grow at a slower pace'

"Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures," it said.

CAD to moderate to 2.1% in FY24

The report projects Current Account Deficit to moderate to 2.1 percent in FY24, as compared to three percent in the current financial year. With regard to inflation, the World Bank Report expects it to ease to 5.2 percent, against 6.6 percent in the current fiscal.

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