India will continue to be the fastest-growing major economy: World Bank

Growth is expected to increase slightly until 2025-26 due to inflation moving back toward the tolerance range's midpoint and the reforms' positive impact

June 7, 2023

India's growth will remain unchanged from April, with projections of 6.3% growth for FY24, increasing to 6.4% in FY25

India's growth prospects will contribute to the overall growth of the South Asian region.

Unexpected resilience in private consumption and investment and robust growth in the services sector have led to an upward revision in India's growth.

This underscores the significance of India's economic performance and highlights its potential to sustain growth momentum despite existing challenges.

India is expected to maintain its position as the fastest-growing major economy in terms of both aggregate and per capita GDP despite a slowdown in growth, according to the World Bank, 

The bank also projects a slight pickup in growth through 2025-26, attributing it to inflation moving back toward the midpoint of the tolerance range and the payoff from reforms. The bank’s April forecasts remain unchanged, with India’s growth projected at 6.3% for FY24, rising to 6.4% in FY25. A growth rate of 6.5% is projected for FY26. Additionally, the World Bank emphasizes that India’s growth will have a positive impact on the growth prospects of the South Asian region.

The World Bank also highlights the unexpected resilience in private consumption and investment, along with robust growth in the services sector in India, as factors contributing to an upward revision in growth for 2023.

Source: The Economic Times

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