World Bank Raises India’s Growth Projection: FY24 GDP at 7.5%

The World Bank has revised India’s GDP growth projection for FY25 to 6.6%, indicating a moderate yet steady growth trajectory. Despite the anticipated slowdown, robust economic activity in India is expected to drive growth in South Asia, outpacing other emerging market and developing economies.

Projections and Estimates

• FY25 growth projection raised to 6.6% by the World Bank, reflecting a slight increase of 20 basis points.
• FY24 GDP estimated at 7.5%, showcasing a resilient economic performance.

Growth Drivers and Outlook

• Strong public investment expected to yield dividends over the next decade, stimulating growth.
• Services and industry sectors projected to sustain robust growth, supported by construction and real estate activities.

Inflation and Policy Implications

• Anticipated subsiding of inflationary pressures creates room for easing financial conditions.
• Medium-term outlook forecasts decline in fiscal deficit and government debt, driven by robust output growth and consolidation efforts.

This analysis, outlined in the World Bank’s South Asia Development Update for April 2024, underscores India’s resilience amidst global economic fluctuations and highlights the potential for sustained growth in the region.