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World Bank increases India’s GDP growth projection to 7.5% for 2023-24

The World Bank has projected a growth rate of 7.5% for the Indian economy in 2024, revising its earlier projections by 1.2%. This increase is attributed to robust activity in services and industry, with Finance Minister Nirmala Sitharaman stating that the economy is on track for an 8% growth rate in the Jan-March quarter.

However, the World Bank expects the growth rate to moderate to 6.6% in 2025, reflecting a deceleration in investment from the previous year’s pace. The medium-term outlook for India includes a decline in fiscal deficit and government debt, supported by strong GDP growth and government consolidation efforts.

In its latest South Asia Development Update, the World Bank predicts a healthy growth for the region, with South Asia set to remain the world’s fastest-growing region for the next two years. Bangladesh is expected to see a rise in output by 5.7% in 2024-25, while Pakistan’s economy is projected to grow by 2.3% and Sri Lanka’s GDP growth is expected to increase by 2.5% during this period.

The World Bank’s revised economic growth forecast for India highlights the country’s strong performance in services and industry sectors, leading to a projected growth rate of 7.5% in 2024. With the economy showing signs of resilience and robust growth, India is poised to continue its upward trajectory in the coming years.

IANS

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