World Bank Updates GDP Growth Projections for Indian Economy and FY25 Estimates
World Bank Adjusts Growth Estimates for Indian Economy
The World Bank on Tuesday issued a revised growth estimate for the Indian economy. The global financial institution has upgraded its GDP forecast for the fiscal year 2024-25 (FY25) to 7 percent, higher than the previous estimate of 6.6 percent.
Factors Behind the Revision
According to the World Bank report titled, India Development Update: India’s Trade Opportunities in a Changing Global Context, the Indian economy continues to be the fastest growing major economy in the 2023-24 fiscal year (FY24), with a projected rate of 8.3 percent. This growth is backed by increased investment in public infrastructure and a rise in household investments in real estate.
- The upward revision stems from positive recovery in the agriculture sector and rising demand in rural areas.
- Economic forecasts highlight the impact of improved monsoon seasons and increasing private consumption.
GDP Estimates from IMF and RBI
Following suit, the IMF recently raised its growth estimate for the Indian economy by 20 basis points to 7 percent for the current financial year. This adjustment reflects expectations for stronger economic performance driven by factors like investment and increased private consumption.
- IMF’s forecast illustrates a continuity in growth expectations, benefiting from the improved performance in 2023.
- The Reserve Bank of India (RBI) has also maintained a growth projection of 7.2 percent for FY25, indicating solid economic stability.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.