India has 'natural cushion' against potential global slowdown next year: World Bank president

India's significant domestic consumption will shield it from the effects of an expected global slowdown at the beginning of the next year, World Bank President Ajay Banga said in New Delhi on Wednesday.

Risk of slowdown in world economy next year: Ajay Banga

The World Bank president said that while the overall outlook for the world economy is "better than expectations", the risk on the downside in terms of a potential slowdown early on during 2023 cannot be written off just yet.

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"Since India gets a lot of its gross domestic product from domestic consumption, even if the world were to slow down for a few months, India has a natural cushion against (it),” Banga told a group of media persons in New Delhi after his meeting with India's finance minister Nirmala Sitharaman.

Ajay Banga & Nirmala Sitharaman hold talks

The World Bank president and India's finance minister reportedly discussed India's developmental priorities. Like many developing economies focused on harnessing their human capital alongside alleviation of poverty and infrastructure upgrades, New Delhi's developmental priorities also include seeking assistance from the World Bank Group in leveraging private investments.

Also watch |Indian-origin Ajay Banga elected as new World Bank president for 5-year term

For the World Bank, India is reportedly one of the largest markets in its portfolio.

"The finance minister mentioned that bridging the knowledge and technology gaps is key to future economic development and the World Bank should accelerate efforts to share the Indian development experience with the Global South," India's finance ministry in a tweet.

India has opportunity to cash in on China Plus One move of companies: Ajay Banga

Previously, during his visit to a skill centrein New Delhi, while responding to a question on India's ability to produce more high-income jobs, Banga said that India has an opportunity to cash inon companies diversifying their supply chains beyond China, in what is being known as China Plus One move of the global firms.

"We need to understand where these jobs are. They are in technology, which is very few... then they are in manufacturing. I think India’s opportunity currently is to cash in on the China Plus One opportunity. This opportunity won’t stay open for 10 years. It is a three- to five-year opportunity when supply chains start relocating or add another location that is going to need work," he said.

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