IANS | 12 Jun, 2024
Driven by strong domestic demand, surge in investment and robust
services activity, India will remain the fastest growing economy in the world,
clocking a steady growth of 6.7 per cent for the next three fiscal years, the
World Bank has said.
In the 'Global Economic Prospects' report, the World Bank retained its
growth forecast for India at 6.6 per cent for FY25.
It said that India will remain the fastest-growing of the world's
largest economies, although its pace of expansion is expected to moderate.
"After a high growth rate in FY 2023/24, steady growth of 6.7 per
cent per year, on average, is projected for the three fiscal years beginning in
FY 2024/25," the global bank said.
For FY26 and FY27, the World Bank projected India’s economy to grow at
6.7 per cent and 6.8 per cent, respectively.
"Private consumption growth is expected to benefit from a recovery
of agricultural production and declining inflation. Government consumption is
projected to grow only slowly, in line with the government’s aim of reducing
current expenditure relative to GDP," the WB report mentioned.
The International Monetary Fund (IMF) had earlier raised India's growth
forecast for 2024-25 to 6.8 per cent from 6.5 per cent on the back of strong
domestic demand and a rising working-age population.
The RBI last week raised India's GDP growth forecast from 7 per cent to
7.2 per cent for the current financial year (2024-25), as it expects the
economy to continue on a high growth trajectory.
RBI Governor Shaktikanta Das said the GDP growth in the first quarter of
2024-25 is likely to be at 7.3 per cent, 7.2 per cent in Q2, 7.3 per cent in
Q3, and 7.2 per cent in the last quarter.
The Indian economy has clocked a robust GDP growth of 7.8 per cent in
the January-March quarter while for the full financial year 2023-24, the growth
rate works out to a stellar 8.2 per cent -- up from 7 per cent in FY 2022-23.
The high growth rate has been driven by a strong performance of the
manufacturing and mining sectors, according to the Ministry of Statistics.
--IANS
