World Bank Revises India's GDP Growth Forecast to 7.5% for 2023-24
In a recent report, the World Bank has revised India's economic growth forecast for 2024 upwards to 7.5 per cent, marking an increase of 1.2 per cent from earlier projections. This surge is attributed to robust activity in both the services and industry sectors. The upward revision follows a remarkable 8.4 per cent GDP growth in the October-December quarter, with Finance Minister Nirmala Sitharaman expressing confidence in achieving an 8 per cent growth rate for the January-March quarter.
However, the World Bank anticipates a moderation in growth to 6.6 per cent in 2025, primarily due to a slowdown in investment compared to the previous year's elevated pace. Despite this, the medium-term outlook remains positive, with fiscal deficit and government debt projected to decrease, supported by strong GDP growth and government consolidation efforts.
The World Bank's South Asia Development Update, released on April 2, forecasts a healthy growth trajectory for the region, largely propelled by India's performance. South Asia is poised to maintain its status as the world's fastest-growing region for the next two years, with a projected growth rate of 6.1 per cent in 2025.
Beyond India, Bangladesh is expected to experience a significant rise in output, projected at 5.7 per cent for 2024-25. Meanwhile, Pakistan's economy is forecasted to grow by 2.3 per cent, and Sri Lanka's GDP is expected to see an increase of 2.5 per cent during the same period.
The World Bank's optimistic outlook underscores the resilience and potential of the South Asian region, with India playing a pivotal role in driving growth. Despite challenges, such as the projected slowdown in investment, the overall trajectory appears promising, with concerted efforts aimed at bolstering economic stability and expansion.
