India growth forecast cut to 8% for FY23, says World Bank

Sluggish recovery in consumption demand, uncertainties of Ukrainian war cited

The World Bank on Wednesday slashed its FY23 growth forecast for India to 8 per cent from 8.7 per cent estimated in January, citing tepid recovery in consumption demand and escalating uncertainties due to the Russian invasion of Ukraine.

“The recovery in private consumption will be constrained by the incomplete recovery in the labor market, and inflationary pressures weighing on households’ purchasing power. The negative impact of the war in Ukraine on FY2022/23 growth is expected to be moderate, so growth will begin to taper off in the second half of 2022,” the World Bank said in its bi-annual “South Asia