The wounds of the epidemic have not yet healed. Russia-Ukraine war has become a ‘poison on the knees’. In this scenario, the rate of inflation in the retail market in India stands at an eight-year high. On record wholesale inflation. That is why the World Bank is not dreaming of a ‘good day’ in terms of financial growth.

On ‘Global Economic Prospects,’ the World Bank on Tuesday released a report. The report says, “India’s economic growth rate for the current fiscal year 2022-23 could be 7.5 percent. Incidentally, in the last financial year (2021-22), the World Bank said that in the fiscal year 2022-23, India’s economic growth rate could be 8.7 percent. Last April, a revised report by the World Bank predicted an 8 percent growth in India. In Tuesday’s report, it was further reduced by 0.5 percent.”

In the third week of May, financial valuation firm S&P Global Ratings reported that India’s economic growth could reach 7.3% in FY 2022-23. The World Bank’s ‘Global Economic Prospects’ report, released on Tuesday, is in line with that forecast.

Significantly, S&P had forecast a growth of 7.8 percent in the current fiscal last December. Although inflation began to rise, geopolitical turmoil did not subside. The assessment agency said that the risk (price increase) that was mentioned earlier has now increased. Added to that is the Russia-Ukraine war. That’s why the forecast was cut to 7.3 percent.

The report also said, “The growth rate could be further reduced to 6.5% in the next financial year (2023-24), raising concerns in New Delhi. The Indian economy has been recovering since the end of the first wave of the Great Depression. Shopping was increasing, factory production. But after that, due to the increase in infections from April 2021, one state after another had to walk the path of local lockdown. Financial activities are affected. Even in this situation, the growth rate in FY 2021-22 was close to 8.7 percent.”