Business News Asia
The World Bank said yesterday (Dec. 6) that the Indian economy will grow 6.9% this fiscal year and is in a strong enough position to overcome global obstacles. India, Asia’s fourth-largest economy, grew 6.3% in the July-September quarter, while GDP growth for the full fiscal year will be 6.8-7%.
The World Bank has raised its forecast for India’s economic growth this fiscal year to 6.9% from the previously expected 6.5%. At the same time, it has lowered its forecast for Indian economic growth in the next fiscal year to 6.6%, compared with a previous expectation of 7%.
India is facing the same problems as other countries, namely rising commodity prices and monetary tightening by central banks around the world.
However, India is not expected to be as affected by the global economic slowdown compared to other emerging markets. World Bank economists believe that the sustainability of India’s debt is not a concern at this point, and government debt is also on a declining trend. According to the report, India’s average inflation rate this year is 7.1%, while a decline in commodity prices could ease inflationary pressures.