New Delhi [India], The World Bank has raised India's GDP growth forecast for the current financial year 2024-25 by 20 basis points to 6.6 percent from its earlier estimate of 6.4 percent made in January.
The World Bank said India will remain the fastest-growing among the world's largest economies, although the pace of its expansion is expected to remain slow.
In its latest Global Economic Outlook report, the International Financial Institution attributed the revision in India's growth projections to strong public investment and growth in private consumption along with private capital expenditure.
Growth in India's industrial activity, including manufacturing and construction, was stronger than expected, along with resilient services activity, which partly helped offset the slowdown in agricultural output due to the monsoon.
Domestic demand growth remained strong with increased investment, including in infrastructure, offsetting consumption growth as pent-up demand eased following the pandemic.For 2025-26, the World Bank similarly raised the growth projection to 6.7 percent from 6.5 percent.
"India's economy is buoyed by strong domestic demand coupled with increased investment and robust service activity. It is projected to grow by an average of 6.7 per cent per fiscal year from 2024 to 2026 – making South Asia the world's fastest growing region ,” the World Bank report read.
Per capita GDP in EMDEs (emerging markets and developing economies), which includes India, is projected to grow by an average of about 3 per cent over 2024-26, well below the 2010-19 average.“Some of the larger EMDEs, such as India, are expected to continue to see solid per capita growth,” it said.
Activity from commodity importers, except China, has been strong. "This reflects resilience in some large economies, particularly India, due to continued strength in domestic demand. Growth in other commodity importers has been more modest so far this year."
According to official data from the Government of India, its GDP grew by a massive 8.2 percent during the financial year 2023-24 and the country remained the fastest growing major economy.India's economy is expected to grow by 7.2 percent in 2022-23 and 8.7 percent in 2021-22 respectively.
The Reserve Bank of India in its latest monetary policy meeting raised the current GDP forecast for 2024-25 to 7.2 per cent from 7 per cent earlier.
Morgan Stanley has projected India's growth at 6.8 percent in 2024.
According to the latest World Economic Outlook of the International Monetary Fund, India will remain the fastest growing economy among major economies in 2024. The IMF has raised India's growth forecast for 2024 to 6.8 percent from 6.5 percent in its latest outlook.The United Nations recently raised India's economic growth forecast for 2024 to 6.9 percent from 6.2 percent, driven mainly by strong public investment and resilient private consumption.
Moody's Ratings expects India's growth rate to be 6.6 percent in the current financial year 2024-25.
The Organization for Economic Co-operation and Development (OECD) estimates that India's growth rate will be 6.6 percent in the next two years.
The Asian Development Bank (ADB) had raised India's gross domestic product (GDP) growth forecast for fiscal year 2024 from 6.7 percent to 7 percent.
The World Bank said India will remain the fastest-growing among the world's largest economies, although the pace of its expansion is expected to remain slow.
In its latest Global Economic Outlook report, the International Financial Institution attributed the revision in India's growth projections to strong public investment and growth in private consumption along with private capital expenditure.
Growth in India's industrial activity, including manufacturing and construction, was stronger than expected, along with resilient services activity, which partly helped offset the slowdown in agricultural output due to the monsoon.
Domestic demand growth remained strong with increased investment, including in infrastructure, offsetting consumption growth as pent-up demand eased following the pandemic.For 2025-26, the World Bank similarly raised the growth projection to 6.7 percent from 6.5 percent.
"India's economy is buoyed by strong domestic demand coupled with increased investment and robust service activity. It is projected to grow by an average of 6.7 per cent per fiscal year from 2024 to 2026 – making South Asia the world's fastest growing region ,” the World Bank report read.
Per capita GDP in EMDEs (emerging markets and developing economies), which includes India, is projected to grow by an average of about 3 per cent over 2024-26, well below the 2010-19 average.“Some of the larger EMDEs, such as India, are expected to continue to see solid per capita growth,” it said.
Activity from commodity importers, except China, has been strong. "This reflects resilience in some large economies, particularly India, due to continued strength in domestic demand. Growth in other commodity importers has been more modest so far this year."
According to official data from the Government of India, its GDP grew by a massive 8.2 percent during the financial year 2023-24 and the country remained the fastest growing major economy.India's economy is expected to grow by 7.2 percent in 2022-23 and 8.7 percent in 2021-22 respectively.
The Reserve Bank of India in its latest monetary policy meeting raised the current GDP forecast for 2024-25 to 7.2 per cent from 7 per cent earlier.
Morgan Stanley has projected India's growth at 6.8 percent in 2024.
According to the latest World Economic Outlook of the International Monetary Fund, India will remain the fastest growing economy among major economies in 2024. The IMF has raised India's growth forecast for 2024 to 6.8 percent from 6.5 percent in its latest outlook.The United Nations recently raised India's economic growth forecast for 2024 to 6.9 percent from 6.2 percent, driven mainly by strong public investment and resilient private consumption.
Moody's Ratings expects India's growth rate to be 6.6 percent in the current financial year 2024-25.
The Organization for Economic Co-operation and Development (OECD) estimates that India's growth rate will be 6.6 percent in the next two years.
The Asian Development Bank (ADB) had raised India's gross domestic product (GDP) growth forecast for fiscal year 2024 from 6.7 percent to 7 percent.
