World Bank raised India's GDP growth forecast for 2022-23 to 6.9 percent
The World Bank estimates that inflation may remain at 7.1 percent in the current financial year.
The World Bank has increased India's GDP growth forecast for the current financial year 2022-23 from 6.5 percent to 6.9 percent. An 'update' related to India was released by the World Bank on Tuesday. It has been said in this update that the developments in America, Euro area and China are likely to affect India as well.
However, the World Bank has also expressed confidence that the government will be able to achieve the fiscal deficit target of 6.4 percent in the current financial year. The World Bank estimates that inflation may remain at 7.1 percent in the current financial year.
Why is it affecting GDP
According to experts, rising inflation is affecting the GDP. In fact, to control rising inflation, central banks around the world, including the Reserve Bank of India, are continuously increasing their interest rates, which is directly affecting the gross domestic product (GDP). Not only this, due to the Corona lockdown in China, there is a very bad effect on the supply chain of the whole world. In such a situation, the fear of recession is being expressed in the whole world.
Know what is GDP after all
If you do not know about Gross Domestic Product (GDP), then let us tell you about it today. Actually GDP is called the total value of all the goods and services produced in the country in any one year. GDP reflects the level of economic activity. From this information comes out that due to which sectors there was a rise in it or a decline was recorded.
The Ministry of Statistics and Program Implementation, Government of India undertakes the work of estimating GDP.