World Bank trims India’s growth forecast

Against the earlier growth forecast of 7.5% in April, the World Bank has trimmed India’s growth forecast to 6% for current fiscal in its latest edition of South Asia Economic Focus. It also noted that the country’s public policy should address the issues of softening private consumption and the structural factors behind weak investment.
External shocks that result in tighter global financing conditions and new NBFC defaults triggering a fresh round of financial sector stress were cited as twin sources of risk. However, the country is expected to gradually recover to 6.9% in 2021 and 7.2% in 2022 owing to an accommodative stance.