Virendra Pandit
New Delhi: The World Bank has revised its growth forecast for India, upgrading it to 7 percent for 2024-25, up from its earlier estimate of 6.6 percent.
The adjustment reflects the continuing strong performance of the Indian economy, the fastest-growing major economy in FY24 with an 8.2 percent growth rate, the media reported on Tuesday.
“India was the fastest growing economy in FY24 at 8.2 percent, and now it’s growing at a good pace,” said Auguste Tano Kouame, the World Bank’s Country Director for India, noting that global growth remains subdued compared to pre-pandemic levels.
Also, the World Bank expects India’s medium-term outlook to remain positive, with strong growth projected for FY26 and FY27. Kouame highlighted the importance of diversifying India’s export basket and leveraging global value chains to achieve USD 1 trillion in merchandise exports by 2030.
“India needs to diversify its export basket and leverage global value chains to reach USD 1 trillion in merchandise exports by 2030.”
It also projected a gradual decline in India’s debt-to-GDP ratio, from 83.9 percent in FY24 to 82 percent by FY27. The current account deficit (CAD) is likely to stay within the range of 1-1.6 percent of GDP up to FY27.
Kouame underlined India’s proactive stance on free trade agreements as a key factor in its economic resilience. “India has had a proactive approach to free trade agreements,” he said.
“India’s robust growth prospects along with declining inflation will help to reduce extreme poverty. India can boost its growth further by harnessing its global trade potential. In addition to IT, business services, and pharma where it excels, India can diversify its export basket with increased exports in textiles, apparel, footwear, electronics, and green technology.”
The World Bank’s updated forecast signals strong confidence in India’s economic trajectory, driven by strategic policy initiatives and a focus on expanding trade and exports.