World Bank Forecasts 6.7% Growth for India in Upcoming Fiscal Years

Synopsis
Key Takeaways
- The World Bank forecasts a 6.7% growth for India.
- Current fiscal year growth is 6.5%.
- Services and manufacturing sectors are set for expansion.
- India remains the fastest-growing large economy.
- Global risks include trade tensions.
United Nations, Jan 17 (NationPress) The World Bank anticipates that India's economy will achieve a growth rate of 6.7 percent in the upcoming fiscal year commencing in April, which is marginally above the current fiscal year's performance, thus maintaining its position at the forefront of global growth.
The World Bank's Global Economic Prospects report, released on Thursday, projected the growth rate for the ongoing fiscal year at 6.5 percent, a reduction from the 8.2 percent recorded in the preceding year.
It noted that “the services sector is poised for continuous growth, and manufacturing activities are expected to gain momentum, bolstered by government efforts to enhance the business climate,” which supports the optimistic growth outlook of 6.7 percent for the next two fiscal years.
While the global gross domestic product (GDP) growth rate remains stagnant at 2.7 percent since 2023 and projected through 2026, India stands out as the fastest-growing large economy globally.
China trails behind with an expected growth rate of 4.5 percent this calendar year, slowing to 4 percent next year.
The United States, the largest economy in the world, recorded a growth rate of 2.8 percent last year, with projections indicating a decline to 2.3 percent this year and 2 percent next year.
The report cautioned about potential risks to the global economy arising from trade disputes and tariff increases, without directly mentioning US President-elect Donald Trump, who has indicated a willingness to disrupt global trade.
“Negative shifts in trade policy among major economies” could pose threats for India, the report stated.
The World Bank's growth projections for India align closely with the forecasts released by the United Nations last week, which estimated growth at 6.6 percent for this calendar year and 6.8 percent for the following year.
The World Bank attributed the decline in India's growth rate from 8.2 percent in 2023-24 to 6.5 percent in the current fiscal year to “a slowdown in investment and weak manufacturing performance.”