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Friday, 14th February 2025

World Bank Projects India’s Growth To Reach 6.7% In 2025-26

By Rupa Das -
  • Updated
  • :
  • 18th January 2025,
  • 4:41 PM

The World Bank has projected that India’s economy will grow by 6.7% annually over next two fiscal years, starting in April 2025. This growth forecast is part of the bank’s broader estimates for South Asia, which is expected to accelerate to 6.2% in 2025-26, with India being the primary contributor. Services And Manufacturing Driving Growth India’s robust economic performance is primarily driven by services. The World Bank highlights that services will continue to be the backbone of India’s growth. At the same time, the manufacturing sector is set to grow […]

World Bank Projects India’s Growth To Reach 6.7% In 2025-26

World Bank Projects India’s Growth To Reach 6.7% In 2025-26

The World Bank has projected that India’s economy will grow by 6.7% annually over next two fiscal years, starting in April 2025. This growth forecast is part of the bank’s broader estimates for South Asia, which is expected to accelerate to 6.2% in 2025-26, with India being the primary contributor.

Services And Manufacturing Driving Growth

India’s robust economic performance is primarily driven by services. The World Bank highlights that services will continue to be the backbone of India’s growth. At the same time, the manufacturing sector is set to grow as the government’s efforts to improve the investment climate bear fruit. As the investment environment improves, the World Bank expects private investments to rise even as public investment sees a slight decline.

Read More: Meghalaya Receives $35 Million From World Bank To Empower Youth

Moderate Slowdown In 2024-25

In the short term, however, India’s growth may slow down slightly to 6.5% in FY 2024-25. This deceleration is mainly attributed to lower investment and reduced manufacturing growth. Despite this slowdown, the country’s private sector consumption will remain strong. Rural income growth and improved agricultural activity are expected to keep consumption levels high.

Growth In South Asia

Beyond India, other South Asian nations are expected to grow at a slower pace. The overall regional growth is projected to be 3.9% in 2024. Pakistan and Sri Lanka are likely to experience growth due to recent improvements in macroeconomic policies. Bangladesh, however, faces some challenges. Its growth is expected to dip slightly to 4.1% in FY 2024-25 before rising to 5.4% in FY 2025-26.

India’s economy is poised for a solid 6.7% growth rate in the next two years. This is going to happen with strong support from the services sector and rising private investment. Although growth may slightly dip in the short term, the long-term outlook remains optimistic for the country and South Asia as a whole.

Read More: India Ranked As World’s Third-Largest Startup Ecosystem

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