World Bank’s Shocking Prediction: India’s Economy Set to Soar at 7.5% Growth Rate!

The World Bank has updated its forecast for India’s economic growth, now estimating a 7.5% expansion in FY24, marking an increase of 1.2% from previous projections. This growth is anticipated to be fueled by robust activity in both the services and industry sectors. However, a moderation to 6.6% growth is predicted over the medium term.

During the final quarter of 2023, India’s economic performance exceeded expectations, with an 8.4% growth compared to the previous year. Key indicators such as the Composite Purchasing Managers Index (PMI) and inflation have remained favorable, while financial conditions have remained supportive. Additionally, there has been significant growth in domestic credit issuance and foreign reserves.

According to the World Bank’s South Asia Development Update released on April 2, the region is forecasted to achieve a 6% growth rate in 2024, largely attributed to India’s strong performance alongside recoveries in Pakistan and Sri Lanka. It anticipates South Asia maintaining its position as the world’s fastest-growing region, with a projected growth rate of 6.1% in 2025.

The outlook for Bangladesh, Pakistan, and Sri Lanka also appears positive, with Bangladesh’s output expected to rise by 5.7% in FY25, Pakistan’s economy projected to grow by 2.3% in the same period, and Sri Lanka’s output growth anticipated to strengthen to 2.5% in 2025.