Russia’s Ukraine Invasion: World Bank Cuts India Growth Forecast

New York: The World Bank on Wednesday cut its economic growth forecast for India and the entire South Asian region on Wednesday.

Citing worsening supply bottlenecks and rising inflation risks caused by Russia’s invasion of Ukraine, World Bank brought down growth estimate for India from 8.7% to 8% for the 2022-23 fiscal year.

As for South Asia, the international lender cut by growth estimate from 7.6% to 6.6%.

According to World Bank, household consumption in India – the largest economy of the region — will be constrained by incomplete recovery of labour market from the pandemic and inflationary pressures.

“High oil and food prices caused by the war in Ukraine will have a strong negative impact on peoples’ real incomes,” World Bank Vice-President for South Asia Hartwig Schafer said in a statement.