World Bank cuts India's growth forecast to 6.3% in FY24

New Delhi: India's GDP is expected to moderate to 6.3 per cent, as against earlier estimate of 6.6 per cent, due to moderation in consumption in FY24, the World Bank said in a report on Tuesday.

India's growth is likely to be constrained by slower consumption growth and challenging external conditions, the World Bank said in its India Development Update.

"Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures," it said.

The report projects Current Account Deficit to moderate to 2.1 per cent in FY24, as against 3 per cent in the current financial year.

With regard to inflation, the World Bank Report expects it to ease to 5.2 per cent, against 6.6 per cent in the current fiscal.