News Brief
Indian Economy Set To Grow At 7.5 Per Cent In 2024: World Bank
Nayan Dwivedi
Apr 03, 2024, 09:59 AM | Updated 09:59 AM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The World Bank has revised its projections for the Indian economy, now anticipating a growth rate of 7.5 per cent in 2024.
This marks an increase of 1.2 per cent from previous estimates for the same period, reported Economic Times.
The latest South Asia Development Update released by the World Bank on Tuesday (2 April) highlights the region's strong growth prospects, with South Asia expected to remain the fastest-growing region globally for the next two years, with growth projected at 6.1 per cent in 2025.
Output growth in India is forecasted to reach 7.5 per cent in FY23/24 before moderating to 6.6 per cent over the medium term.
The robust performance is expected to be driven by strong activity in services and industry sectors.
However, challenges persist in neighboring countries.
Also Read: Powerful 7.4 Magnitude Earthquake Hits Taiwan, Strongest In Over Two Decades: Here's All About It
Bangladesh is projected to see output rise by 5.7 per cent in FY24/25, but faces constraints such as high inflation and trade restrictions.
Meanwhile, Pakistan's economy is expected to grow by 2.3 per cent in FY24/25 following a contraction in the previous fiscal year, while Sri Lanka is forecasted to experience growth of 2.5 per cent in 2025, supported by modest recoveries in reserves, remittances, and tourism.
In India, economic activity surpassed expectations in Q4 2023, with growth reaching 8.4 per cent year-on-year, supported by rapid increases in investment and government consumption.
Despite elevated food price inflation, overall inflation has remained within the Reserve Bank of India's target range.
Looking ahead, the World Bank projects a slowdown in growth between FY23/24 and FY24/25, mainly due to a deceleration in investment.
However, growth in services and industry is expected to remain robust, supported by strong construction and real estate activity.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Nayan Dwivedi is Staff Writer at Swarajya.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
