The World Bank (WB) announced that the Indian economy continues to show strong resilience to global shocks, but slowing consumer growth and difficult external conditions will be an obstacle for growth. For this, the bank lowered its growth forecast for 2023-24 for the country to 6.3%.

The World Bank said in its “India Development Update” published on Tuesday, April 4, 2023 that “rising borrowing costs and slowing revenue growth will weigh on growth in private consumption, and public consumption is expected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.” In January, the International Monetary Fund (IMF) cut India's growth forecast for FY24 from 6.1 percent to 6.8 percent. The World Bank (WB) forecasts that private consumption growth will fall to 6.9% in the current fiscal year, compared with 8.7% the previous year.

The World Bank (WB) also revised India's current account deficit forecast for FY24 to 2.1% of GDP from 2.5% of GDP projected previously.