World Bank Projects India’s Growth at 6.7% for the Next Two Fiscal Years

WASHINGTON: The World Bank estimates that the economy of India will expand 6.7 percent a year in the two fiscal years beginning April 2025, according to its latest growth estimates for South Asia. According to a report published on Thursday, South Asia is likely to accelerate its growth to 6.2% in 2025-26 primarily because of solid performance in India.

In fact, the World Bank has predicted steady growth in India's GDP based on services performance while the manufacturing sector will increase with the efforts of the government in improving the investment climate. The report, therefore, projects that investment growth will also be stable because even at the time when public investment is going to decline, private investment will have increased.

The Indian economy may decelerate to 6.5% in FY 2024-25 driven primarily by lower investment and lesser manufacturing growth; however, this would still show private sector consumption as very high, thanks to the positive thrust in rural income and a relative improvement in supply of agricultural activities.

Growth for other countries than India is likely to be at 3.9% in 2024, mainly based on a good revival in Pakistan and Sri Lanka as these two are reaping the benefits of new macroeconomic policies. Bangladesh will face a few headwinds, and growth is likely to dip marginally to 4.1% in FY 2024-25 and then pick up to around 5.4% in FY 2025-26.

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