World Bank slashes India's economic growth forecast to 6.5% for FY23

Cites Ukraine war, global policy tightening

The World Bank on Thursday slashed its growth estimate for India by one percentage point to 6.5 per cent for FY23, citing the blowback of the Russia-Ukraine war and ongoing global monetary policy tightening.

This is the lowest growth estimate by any multilateral agency for FY23. The International Monetary Fund, which projected India’s economy to grow at 7.4 per cent, is expected to revise its estimate next week. 

In its latest South Asia Economic Update, the multilateral lending agency said economic growth in India would slow in FY23 because the country was coming off a strong recovery in FY22.

“The spillovers from the