The World Bank increased its estimate of India's GDP growth to 6.9% for FY23, citing the country's economy's increased resilience to global shocks. The World Bank stated in its India Development Update that the revision was caused by the Indian economy's increased resilience to global shocks and better-than-anticipated second quarter results.
India’s economy grew at 6.3% in September quarter 2022-23 as compared to 13.5% in the June quarter, mainly on account of contraction in output of manufacturing and mining sectors.
This is the first upgrade of India’s growth forecast by any international agency amid the global turmoil. The World Bank had reduced India's GDP growth prediction in October from 7. 5% to 6. 5%. The analysis, titled "Navigating the Storm," stated that while India's development prospects will be affected by the worsening external environment, the country's economy is better positioned than most other emerging countries to withstand global spillovers.
Impact of a tightening global monetary policy cycle, slowing global growth and elevated commodity prices will mean that the Indian economy will experience lower growth in FY23 compared to FY22 (8.7%), it said.
Meanwhile, Fitch Ratings retained India’s economic growth forecast at 7% for the current fiscal, but cut projections for the next two financial years saying the country is not impervious to global developments.