The World Bank has revised its GDP growth forecast for India in the fiscal year 2023-24, lowering it from 7.2% to 6.3%. This downward adjustment, announced on Tuesday, is attributed to external challenges and a decrease in pent-up demand.
In spite of these hurdles, Auguste Kouame, the World Bank’s Country Director for India, underscored the role of public expenditure in creating a conducive environment for private investments. Kouame pointed out that this could enable India to capitalize on global opportunities and stimulate economic expansion.
The World Bank’s India Development Update, released on Tuesday, provides these projections and insights. The report highlights the importance of state spending in fostering conditions that attract private sector investments, thereby equipping India to seize international opportunities and enhance its economic growth.
Despite facing external challenges and reduced pent-up demand, the World Bank remains optimistic about India’s economic prospects. It emphasizes the potential of public investments to drive economic growth by stimulating private sector activity and enabling India to leverage global opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
This story originally appeared on Investing
