India’s economy is likely to grow well below its potential over the next two years, said Reuters poll of economists.

According to media reports, growth was expected to be faster than in many other economies. However, it would be too slow for the job creation needed to pull tens of millions of people out of poverty in a country typically ranked one of the worst in the world for hunger.

Growth declined to an annual 6.0 percent in the third quarter from 13.5 percent in the second.

The median expectation was for 6.9 percent growth in the 2022-23 fiscal year, slightly above the International Monetary Fund (IMF) and World Bank projections of 6.8 percent. It was forecast to slow to 6.1 percent next year.

Economist at Societe Generale, Kunal Kundu told the Economic Times, "India has…its own set of domestic challenges: weak employment, negative real wages and weakening industrial activity even in the lead up to the main festive season.”

The poll results highlight how the RBI's interest rate-hiking campaign, which only started five months ago and according to the poll will end in the first quarter of 2023, has done little to bring down price pressures.

It is to be mentioned that, like other economies around the world, India has struggled with soaring energy prices stemming from Russia's invasion of Ukraine and a particularly devastating pandemic, from which businesses are still recovering.

In September month, India’s retail inflation accelerated to a five-month high of 7.41 percent year-on-year as food prices surged. It raised fears of further rate hikes, as the central bank will be holding a meeting for its next policy review in December.

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