NEW DELHI (Reuters) -The World Bank cut its economic growth forecast for India on Wednesday, citing increased uncertainty in the global economy that will dim prospects for most South Asian nations.
The World Bank lowered its forecast for India by 0.4 percentage points to 6.3% for the fiscal year that started on April 1, from its previous forecast in October.
“Benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty,” the World Bank said in its report on South Asia.
It cut its growth forecasts for most South Asian nations, citing “limited buffers to withstand global challenges.”
Earlier this week, the International Monetary Fund (IMF) also cut its economic growth forecast for India for the current fiscal year, citing increased trade tensions and global uncertainty.
The IMF lowered its forecast to 6.2% from the 6.5% it had forecast in January for the current fiscal year.
The World Bank and IMF’s revised forecasts are marginally below the Reserve Bank of India’s 6.5% growth estimate.
(Reporting by Shivangi Acharya; Editing by Kim Coghill)
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