The World Bank has forecast that the India’s economic growth will be a key driver of growth in the South Asian region, with a robust growth rate of 7.5% forecast for the country in FY 2023-24 This growth, according to the report , will significantly contribute to overall economic expansion in South Asia It is expected to grow at .0-6.1%.The World Bank attributed India’s strong performance to manufacturing growth, especially in industry and services, . which is expected to remain strong in the near term.
In its latest report, the World Bank highlighted India’s economic strength and optimism for the coming years. The report noted that despite being projected to slow to 6.6% in FY 2024-25, India’s growth rate is expected to accelerate in the coming years, with public investment den ten years and helps.
World Bank Forecasts India’s Economic Growth as Key.
The bank emphasized the role of public investment in sustainable development, especially in sectors such as construction and real estate. Furthermore, it highlighted an expected decline in inflationary pressures, which would lead to more easing policies. In the medium term, the report projected a reduction in fiscal deficit and government debt, helped by strong manufacturing growth and consolidation efforts by the central government.
Additionally, the World Bank emphasized the importance of private investment and employment growth to enhance growth resilience in the region. World Bank Vice President for South Asia Martin Reiser stressed the need for countries to adopt policies aimed at increasing private investment to foster sustained economic expansion.
The report also provided insight into the health of other South Asian economies.
It mentioned Bangladesh’s expected output rise of 5.7% in the fiscal year 2024-25, driven by high inflation and trade restrictions. Pakistan and Sri Lanka are projected to witness economic recoveries, with growth rates of 2.3% and 2.5%, respectively, in 2025.
Overall, while growth outlook for South Asia looks promising in the short term, the report warns of weak economic conditions and rising climate shocks. It called for greater efforts to strengthen economic resilience and make better use of the demographic dividend in the region.
In conclusion, the World Bank’s positive outlook for the Indian economy underlines its importance for growth in South Asia.
However, it also highlights the need for proactive policy measures to sustain economic momentum and address emerging challenges.
