Washington, Apr 4 : The World Bank on Tuesday slashed India’s GDP to 6.3 per cent as against an estimate of 6.6 per cent in fiscal 2023-24, citing high borrowing costs and slower income growth as among reasons behind the downgrade.
“In India, South Asia’s largest economy, high borrowing costs and slower income growth are expected to dampen consumption and lower growth to 6.3 per cent in FY 2023/24,” the World Bank said in a report for South Asia released on Tuesday ahead of the annual spring meeting of the International Monetary Fund and the World Bank.
“The main reason for the downgrade of the forecast is weak consumption, and also tightening of fiscal policies, and especially tightening of the current expenditure by the government. Domestic consumption is held back by the tighter fiscal situation,” Hans Timmer, World Bank Chief Economist for South Asia, told reporters during a news conference here.
