The most recent forecasts from the World Bank suggest that India, poised for growth, will maintain its position as the world’s fastest-growing economy.
Fueled by robust domestic demand, a surge in investments, and resilient services activity, analysts anticipate that the country will sustain a steady growth trajectory averaging 6.7 per cent over the next three fiscal years.
In its ‘Global Economic Prospects’ report, the World Bank affirmed India’s growth forecast at 6.6 percent for the fiscal year 2024-25, underscoring the nation’s resilience amidst global economic dynamics.
While anticipating a moderate pace of expansion, India accurately positions itself to outpace its peers, continuing to shine as a beacon of growth.
The report outlines a trajectory of consistent growth, with India projected to expand at 6.7 percent annually for the fiscal years commencing from 2024-25.
Looking further ahead, the World Bank forecasts growth rates of 6.7 percent and 6.8 percent for India’s economy in fiscal years 2025-26 and 2026-27, respectively.
Analysts anticipate that private consumption will be a key driver of this growth, buoyed by a recovery in agricultural production and a decline in inflation.
However, government consumption is to grow modestly, aligning with fiscal objectives aimed at reducing current expenditure relative to GDP, as highlighted in the World Bank report.
These projections echo similar sentiments expressed by other prominent institutions.
The International Monetary Fund (IMF) recently revised India’s growth forecast upwards to 6.8 percent for the fiscal year 2024-25, citing strong domestic demand and a burgeoning working-age population as contributing factors.
RBI Upgrades India’s GDP Forecast Amid Sustained Economic Momentum
Additionally, the Reserve Bank of India (RBI) has raised its GDP growth forecast for the current financial year (2024-25) from 7 percent to 7.2 percent, anticipating sustained economic momentum.
RBI Governor Shaktikanta Das revealed a quarter-wise growth estimate, with projections indicating a robust performance across all quarters.
India’s economic resilience was underscored by recent GDP data, showcasing a robust growth rate of 7.8 percent in the January-March quarter.
For the full financial year 2023-24, the economy expanded at an impressive rate of 8.2 percent, signaling a substantial uptick from the previous fiscal year.
Meanwhile, the Ministry of Statistics attributed this growth surge to stellar performances in the manufacturing and mining sectors, underlining the diversified nature of India’s economic resilience and growth trajectory.
As India navigates global economic headwinds, these projections paint a promising picture of sustained growth and resilience, positioning the nation as a beacon of stability and opportunity amidst evolving global dynamics.
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