The World Bank on Tuesday lowered its forecast for India’s economic growth in the current fiscal year that started on April 1 to 6.3% from 6.6% as it expects higher borrowing costs to hurt consumption.
To tame inflation, India’s central bank has raised interest rates by 250 basis points since May.
“Rising borrowing costs and slower income growth will weigh on private consumption growth,” the World Bank said in a report.
“Government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.” The World Bank estimated last fiscal year’s growth at 6.9%.
Source : World Bank Cuts India’s Growth Projection for Current Fiscal Year to 6.3%