What is the latest World Bank outlook for India GDP growth?
Answer
Answer
World Bank has reduced India’s GDP forecast for FY21 from -4.5% to -9.6%. However, India is expected to grow at 5.4% in FY22. World Bank has pointed to financial sector fragility, slowing growth and limited fiscal buffers as the reasons for this downgrade.
World Bank did note that policy interventions preserved the normal functioning of financial markets. World Bank apprehends that demand slowdown could trigger loan delinquencies and risk aversion.