Challenging environment

Global economy will affect India's prospects

Global economic uncertainty has somewhat receded over the past few months, but the outlook for the foreseeable future remains weak. The International Monetary Fund’s (IMF’s) July update of the World Economic Outlook (WEO), released on Tuesday, increased the global growth projection for 2023 by 0.2 percentage points. It also upgraded India’s growth projection for the current year by 0.2 percentage points to 6.1 per cent. However, global growth at 3 per cent for both 2023 and 2024 would be considerably below the historical (2000–2019) annual average of 3.8 per cent. The world economy expanded 3.5 per cent in 2022. In