World Bank raises Indian growth forecast to 7 % in FY 25
Report
4 min read
The World Bank has raised the growth forecast for the Indian economy in the current financial year (2024-25) to 7 per cent from its earlier projection of 6.6 per cent. The upward revision in the World Bank forecast occurred after the Indian economy recorded its lowest quarterly growth in fifteen months. The Indian economy grew by 6.7 per cent during the Q1(April-June) of the 2024-25 fiscal year.
The World Bank report “India Development Update: India’s Trade Opportunities in a Changing Global Context” was released on 3 September 2024.
Main Points of the World Bank Report
The World Bank expects the Indian economy to grow at a good pace despite the challenging global economic situation.
- The World Bank expects India to remain the fastest-growing major economy in the world in the current financial year.
- The Indian economy grew by 8.2 per cent in 2023-24 and was the fastest-growing major economy in the world.
- It expects the Indian economy to grow by 6.7 per cent in 2025-26 and 2026-27.
- It highlighted the importance of trade in the country’s economic growth and suggested that India diversify its export basket and become part of the global value chain.
- The report suggests India should also focus on the textiles, apparel, footwear, electronics, and green technology products sectors to diversify its export basket.
- According to the World Bank, India is globally competitive in Information Technology, business services, and pharmaceutical sector exports.
- The continuing growth and a decline in inflation will help India reduce poverty.
Growth Rate Forecast for the Indian Economy
Following are the forecasts of various global and Indian financial agencies regarding the growth of the Indian economy (as of 3 September 2024)
|
Agency / Organisation |
GDP forecast for 2024-25 |
GDP Forecast for 2025-26 |
|
Reserve Bank of India |
7.2% |
- |
|
World Bank |
7 % |
6.7% |
|
International Monetary Fund |
7 % |
6.5% |
|
Asian Development Bank |
7% |
7.2% |
|
Moody's |
7.2 % |
6.6 % |
|
Morgan Stanley |
6.8% |
6.5% |
|
S&P Global |
6.8% |
7% |
|
United Nations |
6.6 %(January to December2025 ) |
- |
|
OECD |
6.6 % |
6.5% |
|
Fitch Rating |
7.2% |
6.5 % |
|
CRISIL |
6.8% |
- |
|
Citi Bank |
6.8% |
|
|
Standard Chartered Bank |
7.0% |
|
|
India Ratings and Research (Ind-Ra) |
7.5% |
|
|
ICRA |
6.8 % |
|
|
SBI |
7.0 % |
Reports Published by World Bank
The World Bank is a multilateral development institution established in July 1944 along with the International Monetary Fund.
The World Bank is a group of five international financial institutions. It releases several research reports. The important ones are :
- World Development Report
- Global Economic Prospect
- Global Financial Development Report
- Commodity Market Outlook
- International Debt Statistics
Headquarters: Washington D.C, the United States of America
President: Ajay Banga
Members: 189 countries.
