According to the World Bank, the Indian economy will grow by 6.5% for the fiscal year 2022-23, down one percent from its previous June 2022 projections.
Ahead of the annual meeting of the World Bank and the International Monetary Fund, the World Bank released its latest South Asia Economic Focus, which noted that India is recovering faster than other countries.
In the previous year, the Indian economy grew by 8.7%.
According to Hans Timmer, Chief Economist for South Asia at the World Bank, “the Indian economy has performed well in comparison with other countries in South Asia… rebounded from the sharp contraction during Covid’s first phase.”
He observed that India has done relatively well because it doesn’t have a large external debt, there are no problems coming from there, and its monetary policy is prudent.
Service exports and the services sector have performed particularly well in the Indian economy.
Despite this, we have downgraded the fiscal year forecast, mainly due to the deteriorating international environment for all countries, including India. Across the world, we are seeing signs of slowing in the middle of this year,” he said.
According to him, the second half of the calendar year is weak in many countries and will be weak in India as well.
By using digital ideas, the Indian government has set an example for the rest of the world, such as expanding social safety nets. “I think they’re reaching almost a million people at the moment. Also, it’s a good response,” he said.
The government and the people are not prepared to deal with that. He explained that the reason for this is that too few people are participating fully in the economy, which is a high priority for India.
“In India, big firms are the focus. FDI is the focus. All of that is very good. Social safety nets are the focus. Likewise, that’s great. There’s still a long way to go. Timmer said more people need to be integrated into the economy.