The World Bank on Tuesday lowered India’s growth forecast for the current fiscal year (2022-’23) to 7.5% from its earlier estimate of 8% announced in April.

This is the second time that the World Bank has revised its growth forecast for India in the current financial year. In April, the financial body had revised India’s projected economic growth to 8% from the previous estimate of 8.7% in January.

On Tuesday, the World Bank said that in India rising inflation, supply disruptions and geopolitical tensions are likely to offset the effect of recovery in consumption of services after the Covid-19 lockdowns. It added that in 2023-’24, growth in India’s gross domestic product is expected to further slow down to 7.1%.

India’s gross domestic product grew at 8.7% in 2021-’22, government data released last week showed. The growth rate was less than the 8.9% estimated by the Ministry of Statistics and Programme Implementation in February.