Domestic consumption provides a natural cushion to the Indian economy against global slowdown as the bulk of the country’s GDP depends on local demand, World Bank president Ajay Banga said here on Wednesday.

“India gets a lot of its GDP from domestic consumption. So, even if the world would slowdown for a few months, India has a natural cushion by the fact that it is more domestic consumption-oriented,” Banga said.

India-born Banga is here to attend the meetings of the G20 being held under India’s presidency.

About the global economic outlook, he said, “I think,we did better than we all thought. But I still feel that there’s more risk on the downside in terms of a slowdown over the early part of next year.

“As I said, in the G20, meeting, forecasts are not destiny and so you shouldn’t just think that the forecast is right. Think about what can be done.”

Banga, 63, took over as the World Bank president last month.

He is on his first visit to India after taking charge as the president.

Talking to reporters after meeting finance ministerNirmala Sitharaman, Banga said he discussed issues related to G20 and co-operation between the World Bank and India.

ADB forecast

The Asian Development Bank (ADB) on Wednesday retained India’s economic growth forecast at 6.4 per cent for FY2024 on recovery in consumption demand in both rural and urban areas.

However, suppressed exports due to global slowdown will be a drag, it said.

The Indian economy grew 7.2 per cent in 2022-23.