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In its latest report, the World Bank anticipates India to maintain its status as the world’s fastest-growing economy, fueled by robust domestic demand, increased investment, and a thriving services sector. The forecast predicts a steady growth trajectory, with India expected to achieve a GDP growth rate of 6.7% over the next three fiscal years.
The ‘Global Economic Prospects’ report underscores India’s resilience, projecting a growth rate of 6.6% for the fiscal year 2025. Despite expectations of a moderation in expansion, India is poised to outpace other major economies.
The World Bank’s projections extend further, with the Indian economy forecasted to grow at rates of 6.7% and 6.8% for fiscal years 2026 and 2027, respectively. The report highlights factors such as a recovery in agricultural output and declining inflation contributing to buoyant private consumption growth.
Echoing similar sentiments, the International Monetary Fund (IMF) and the Reserve Bank of India (RBI) have raised their growth forecasts for India. The IMF cites strong domestic demand and a burgeoning working-age population as catalysts for the upward revision.
RBI Governor Shaktikanta Das recently revised India’s GDP growth forecast for the current financial year to 7.2%, anticipating sustained momentum across all quarters. Notably, India recorded a robust GDP growth of 7.8% in the January-March quarter of 2024, contributing to an impressive annual growth rate of 8.2% for the fiscal year 2023-24.
The Ministry of Statistics attributes this stellar performance to the remarkable strides made by the manufacturing and mining sectors, underscoring India’s economic resilience amidst global uncertainties.
