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The World Bank has maintained India's GDP forecast for FY25 at 7%, led by rising private consumption.

Economy Business | Dated: 19 Oct 2024

On 10th October 2024, the World Bank (WB) released a report titled "South Asia Development October 2024 Update: Women, Jobs and Growth." The report retained India's Gross Domestic Product (GDP) growth forecast for the Financial Year 2024-25 (FY25) at 7% Year-on-Year (Y-o-Y). This growth projection is mainly attributed to higher agricultural production and robust employment growth from policy initiatives, which further boost private consumption.

🎯 Key Highlights:

  • - The World Bank has also retained India's GDP growth forecast at 6.7% for FY26 (2025-26).

💡 Other Important Facts:

  • (i) The World Bank has raised its growth projection for the South Asia region to 6.4% in 2024, up from its previous estimate of 6.0%.
  • (ii) The report cited several factors contributing to the positive growth in South Asia, including the strength of domestic demand in India and quicker recoveries in crisis-hit countries such as Sri Lanka and Pakistan.
  • (iii) Additionally, the report estimates that South Asia's output will grow by 6.2% in 2025. This growth projection is primarily driven by strong private consumption in India, along with increased tourism and hydropower exports in Bhutan, Nepal, and Sri Lanka.

📚 Test Your Knowledge:

Which organization has recently maintained India's GDP growth forecast for FY25 at 7%?

Correct Answer: World Bank

🚀 Quick Recap:

About World Bank

  • President: Ajay Banga
  • Headquarters: Washington, D.C., United States