World Bank retains India's 6.3% growth forecast for FY24
Report
5 min read
The World Bank, in its India Development Update Report released on October 3, 2023, expects the Indian economy to grow by 6.3% in 2023-24, even though it expects the global economy to face challenging times.
The Indian economy grew by 7.2 % in 2022-23. According to the Bank's Country Director in India, Auguste Kouame, "An adverse global environment will continue to pose challenges in the short-term for the Indian economy."
The World Bank's growth forecast for the current financial year is 20 basis points lower than the Reserve Bank of India (RBI). RBI expects India to grow by 6.5% in 2023-24. One basis point is a hundredth of a percentage point.
The World Bank expects the Indian economy to grow by 6.4% in 2024-25 and 6.5% in 2025-26.
The Indian Economy grew by 7.8% in the first quarter (April-June) of 2023-24.
World Bank
The World Bank is the world's largest Multilateral Development Bank. It was set up in July 1944 after the successful conclusion of the United Nations Monetary and Financial Conference held at Bretton Woods, New Hampshire, United States. The conference, which was held from July 1 to 22, 1944, is also known as the Bretton Woods Conference.
World Bank Group
Initially, the World Bank was known as the International Bank for Reconstruction and Development (IBRD). Later, its name was changed to the World Bank when more institutions were set up by the World Bank.
The main purpose of the World Bank was to provide loans to the member countries for economic development. Later on, the World Bank created new institutions according to the emerging different needs of the member countries.
At present, the World groups include five institutions:
- International Bank for Reconstruction and Development (IBRD). It is the main body of the World Bank, which provides loans to the member countries for development purposes.
- International Financial Corporation(IFC). It invests in the private sector companies of the member countries.
- International Development Assistance (IDA). It provides loans at concessional rates to the Least developed Member countries.
- Multilateral Investment Guarantee Agency (MIGA) and
- International Center for Settlement of International Dispute (ICSID).
Owner of the World Bank
At present, there are 189 member countries of the World Bank. These countries are the shareholders of the World Bank and, hence, the owner of the Bank. The United States of America holds a 17.25% share in the World Bank and is the largest shareholder of the Bank.
India is the 7th largest shareholder of the World Bank with a 2.91% share.
The Headquarters of the World Bank Group is in Washington D.C., United States of America.
India and the World Bank
- India is the founder member of IBRD, IDA and IFC. India is a member of all the constituents of the World Bank except ICSID (International Centre for Settlement of Investment Disputes).
- The World Bank granted the first loan to India in 1948. It provided loans for funding the Agricultural Machinery Project.
- The World Bank resident mission was established in India in 1957.
- The first investment of IFC in India took place in 1959 with US$ 1.5 million. India became a member of MIGA in January 1994.
President of World Bank: Ajay Banga (American citizen)
