The World Bank predicts a steady growth rate of 6.7% for the next three fiscal years, positioning India as the fastest-growing economy globally.
· In its ‘Global Economic Prospects’ report, the World Bank reaffirmed its growth forecast for India at 6.6% for the fiscal year 2024-25.
· For the subsequent fiscal years of 2025-26 and 2026-27, the World Bank forecasts India’s economy to maintain its momentum with growth rates of 6.7% and 6.8%, respectively.
· The IMF and the RBI have also revised their growth forecasts for India, citing strong domestic demand and favorable demographic trends.
· India’s robust economic performance in recent quarters underscores the resilience and dynamism of the economy.
India’s economic trajectory remains bullish as the World Bank predicts a steady growth rate of 6.7% for the next three fiscal years, positioning the nation as the fastest-growing economy globally. Fueled by robust domestic demand, increased investment, and vibrant services activity, India’s economic outlook retains its vigor despite expectations of a moderated pace of expansion.
In its ‘Global Economic Prospects’ report, the World Bank reaffirmed its growth forecast for India at 6.6% for the fiscal year 2024-25, emphasizing the country’s resilience amidst evolving global economic dynamics.
The report highlights India’s steadfast growth momentum, projecting an average growth rate of 6.7% per year for the fiscal years commencing from 2024-25. This sustained growth trajectory underscores India’s resilience in navigating economic challenges and capitalizing on emerging opportunities.
For the subsequent fiscal years of 2025-26 and 2026-27, the World Bank forecasts India’s economy to maintain its momentum with growth rates of 6.7% and 6.8%, respectively. This optimistic outlook reflects confidence in India’s economic fundamentals and its ability to drive sustained growth over the medium term.
The report attributes the buoyancy in India’s economic growth to various factors, including a recovery in agricultural production, declining inflation, and supportive government policies. It underscores the pivotal role of private consumption growth, bolstered by favorable agricultural conditions and prudent fiscal measures aimed at enhancing economic resilience.
Moreover, the International Monetary Fund (IMF) and the Reserve Bank of India (RBI) have also revised their growth forecasts for India, citing strong domestic demand and favorable demographic trends. The IMF raised India’s growth forecast for 2024-25 to 6.8%, while the RBI anticipates GDP growth of 7.2% for the current financial year, signaling confidence in India’s growth trajectory.
India’s robust economic performance in recent quarters, with GDP growth rates of 7.8% in the January-March quarter and 8.2% for the full financial year 2023-24, underscores the resilience and dynamism of the economy. The stellar performance has been underpinned by strong contributions from the manufacturing and mining sectors, according to official data from the Ministry of Statistics.
As India continues on its path of economic recovery and growth, supported by proactive policy measures and structural reforms, it remains poised to harness its vast potential and emerge as a key engine of global economic growth in the years ahead.
The sustained growth trajectory projected by the World Bank underscores India’s resilience and economic prowess, positioning it as a beacon of stability and opportunity amidst global economic uncertainties. With a robust foundation and a forward-looking policy framework, India is poised to chart a path of inclusive and sustainable growth, unlocking new avenues of prosperity for its citizens and contributing to global economic stability.
(With inputs from agencies)
