The World Bank said India is in a better position than many other emerging economies to withstand the impact of global headwinds, revising its growth forecast for the country to 6.9% for fiscal 2022 from an earlier estimate of 6.5%.
Asia's third-largest economy, which grew 6.3% in the July-September quarter, is estimated to grow 6.8-7% in the current 2022/23 fiscal year ending in March.
Like many developing countries, India has faced inflation due to a spike in global food and fuel prices. That prompted the central bank to raise policy interest rates while warning of the impact of a slowing international economy.
He said high tax levies, foreign exchange reserves and available policy space, along with prudent macroeconomic management, have helped make India's economy resilient to the financial crisis.
The World Bank lowered its growth forecast for India to 6.6 percent from 7 percent previously for fiscal 2023/24, which begins in April. India, like its global peers, has been hit by higher commodity prices and central bank interest rates around the world.
But the World Bank is confident that the global slowdown will have a much smaller impact on India than on other emerging economies.
The report said that for other emerging economies, the impact of weaker growth in the U.S., eurozone countries and China was at least 1.5 times that of India, noting that a one percentage point drop in U.S. growth could reduce growth in India. by 0.4 percentage points.