Sanyal says that India is on the course for projected growth, backed by robust PMI, and investments in the public and private sectors. Being in the GBI-EM will mean greater access to cheaper funds over the next few years, which is crucial, he says.
The Indian economy will grow a robust 6.1% this fiscal year fueled mainly by strong government spending, according to a Reuters poll of economists who also said consumption and exports will be the biggest drag.
The India Development Update by World Bank stated that the country's retail inflation will see a moderation from 6.6 per cent to 5.2 per cent in FY2023-24.
The main reason for the downgrade of the forecast is weak consumption, and also tightening of fiscal policies, and especially tightening of the current expenditure by the government, said Hans Timmer, World Bank Chief Economist for South Asia