The Indian economy is estimated to grow at 6.3 per cent in the current financial year 2023-24, showing resilience despite elevated inflation and global headwinds, the World Bank said in its India Development Update released Tuesday. Though the growth estimate by the Bank has been retained from its earlier update in April, it is 20 basis points lower than the 6.5 per cent growth estimate both by the government and the Reserve Bank of India (RBI) for FY24.
The World Bank, however, raised the inflation forecast for FY24 to 5.9 per cent from 5.2 per cent in its April update, citing risks from the monsoon deficiency and its evolving impact on prices, El Niño phenomena, and global supply chain disruptions. With inflation expected to remain sticky, the Monetary Policy Committee of the RBI, which will begin its meeting from Wednesday, is expected to keep the repo rate unchanged.
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