Business

World Bank Projects India’s Growth At 6.7% For Next Two Fiscal Years

The World Bank has projected India’s economy to grow at 6.7% in the next fiscal year, starting in April, slightly higher than the growth rate forecast for the current fiscal year.

Despite the decline in the growth rate from 8.2% in the previous period, India continues to lead the growth charts among major economies.

The World Bank’s Global Economic Prospects, released on Thursday, estimates the growth rate for the current fiscal year at 6.5%.

However, it noted that India’s services sector is expected to maintain its robust expansion, while manufacturing activity is likely to strengthen, supported by government initiatives aimed at improving the business environment.

World Bank Highlights Global Growth

The World Bank highlighted that global GDP growth has remained stagnant at 2.7% since 2023, with projections extending through 2026. India remains the fastest-growing major economy in the world, surpassing others like China and the United States.

China follows India with a projected growth of 4.5% in the current calendar year, slowing to 4% next year. In contrast, the United States, the world’s largest economy, is expected to experience slower growth, with a projection of 2.3% this year and 2% next year.

World Bank Warns For Risks From Trade Tensions

The report also warned about the potential risks to the global economy, particularly from trade tensions and tariff hikes. While the World Bank did not specifically mention US President-elect Donald Trump, who has threatened to disrupt global trade, it cautioned that “adverse trade policy shifts in major economies” could affect India’s growth prospects.

World Bank’s Growth Projections For India

The World Bank’s growth projections for India align closely with the United Nations’ projections, which predict a 6.6% growth rate for this calendar year and 6.8% for the next. The World Bank attributed the slowdown in India’s growth from 8.2% in 2023-24 to 6.5% in the current fiscal year primarily to a decline in investment and weak manufacturing performance.

Despite the slowdown, India’s economy remains resilient and is poised to continue its strong growth trajectory in the coming years.

Also Read: Reliance’s Consolidated Revenue For 3rd Quarter Of FY25 Surges By 7.7% YOY

Purnima Mishra

Recent Posts

SC Upholds Rajasthan’s Electricity Regulations; Dismissing Power Companies Plea

The Supreme Court has granted a major relief to the Rajasthan government by upholding the…

10 hours ago

SC Expresses Concern Over Rising Trend Of False Rape Cases On Marriage Promises

The Supreme Court has expressed concern over the rising tendency to register rape cases based…

10 hours ago

Adani Ports Mundra Sets National Record With Historic 200 MMT Cargo Handling Milestone

Adani Ports & Special Economic Zone set a national record by handling 450 MMT of…

10 hours ago

SC Seeks Response On Vikas Yadav’s Bail Plea In Nitish Katara Murder Case

SC issues notice to UP govt, Neelam Katara on Vikas Yadav’s interim bail plea in…

11 hours ago

SC Slams Telangana CM Over Remarks On BRS MLAs’ Disqualification Case

The SC expressed displeasure over Telangana Chief Minister A Revanth Reddy’s remarks regarding the disqualification…

11 hours ago

Jamaat-e-Islami Hind (JIH) Opposes Waqf Bill; Calls It Legislative Discrimination

JIH President Syed Sadatullah Husaini condemns the Waqf Amendment Bill for singling out Muslims and…

11 hours ago