The World Bank has a GDP growth projection of 7 % in FY 2024-25 for India in its latest India Development Update. It expects it to retain its position as the fastest-growing major economy. India’s GDP growth stood at 6.9 % in FY 2023-24 supported by both external headwinds against the economy as well a robust recovery in the agriculture sector and resilient rural demand.
This was signified in a recent World Bank report entitled “India Development Update: India’s Trade Opportunities in a Changing Global Context”, which confirmed further the resilience of the Indian economy. The report said, ‘The recovery of agriculture-a very important factor-will offset the slight deceleration in industry, while services will continue to be resilient’.
The Indian economy grew 8.2 % during the past fiscal year that ended in March 2018. The manufacturing sector marked a remarkable growth rate of 9.9 %. The World Bank sees India’s medium-term growth outlook remaining positive. The economy is projected to grow 7 % in FY25 and continue its strong pace through FY26 and FY27. Further, the country’s debt-to-GDP ratio is expected to fall from 83.9 % in FY24 to 82 % by FY27, indicating further fiscal consolidation.
It is believed, therefore, by the World Bank that trade accounts a great promise of improving India’s economic growth. As per the reports, the new trends in global trade-particularly protectionism and the restructuring of global value chains since the pandemic-have created new opportunities for India.
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