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World Bank ups India growth forecast to 7% for FY25

The World Bank on Tuesday raised India's growth forecast to 7% for the current fiscal year, citing a robust recovery in the agricultural sector and rural demand, despite global challenges.

News Arena Network - New Delhi - UPDATED: September 3, 2024, 02:48 PM - 2 min read

World Bank ups India growth forecast to 7% for FY25

India's growth is projected to remain strong at 7% in 2024-25, the World Bank stated in its India Development Update.

The World Bank on Tuesday revised its growth forecast for India's economy to 7% for the current fiscal year, citing a recovery in the agricultural sector and increased rural demand.

In June, the World Bank had projected a 6.6% growth rate for India in FY24. Despite global challenges, India's economic performance remains robust, according to the World Bank's latest report.

Ran Li, a senior economist at the World Bank, attributed the upward revision to an improvement in the monsoon season and stronger private consumption.

The World Bank also forecasts that India's growth will remain steady at 7% in 2024-25, highlighting the country's significant role in the South Asian region.

The report noted that a recovery in agriculture is expected to counterbalance a slight slowdown in the industrial sector, while the services sector is anticipated to remain strong. Rural private consumption is expected to improve, driven by the recovery in agriculture.