India to log 6.7% GDP growth in next 3 years, remain fastest-growing economy: World Bank

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Driven by robust home demand, surge in funding and sturdy companies exercise, India will remain the quickest rising financial system in the world, clocking a gentle growth of 6.7 per cent for the next three fiscal years, the World Bank has mentioned.

In the ‘Global Economic Prospects’ report, the World Bank retained its growth forecast for India at 6.6 per cent for FY25.

It mentioned that India will remain the fastest-growing of the world’s largest economies, though its tempo of growth is predicted to average.

“After a excessive growth fee in FY 2023/24, regular growth of 6.7 per cent per yr, on common, is projected for the three fiscal years starting in FY 2024/25,” the worldwide financial institution mentioned.

For FY26 and FY27, the World Bank projected India’s financial system to develop at 6.7 per cent and 6.8 per cent, respectively.

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“Private consumption growth is predicted to profit from a restoration of agricultural manufacturing and declining inflation. Government consumption is projected to develop solely slowly, in line with the federal government’s purpose of lowering present expenditure relative to GDP,” the WB report talked about.

The International Monetary Fund (IMF) had earlier raised India’s growth forecast for 2024-25 to 6.8 per cent from 6.5 per cent on the again of robust home demand and a rising working-age inhabitants.

The RBI final week raised India’s GDP growth forecast from 7 per cent to 7.2 per cent for the present monetary yr (2024-25), because it expects the financial system to proceed on a excessive growth trajectory.

RBI Governor Shaktikanta Das mentioned the GDP growth in the primary quarter of 2024-25 is probably going to be at 7.3 per cent, 7.2 per cent in Q2, 7.3 per cent in Q3, and seven.2 per cent in the final quarter.

The Indian financial system has clocked a strong GDP growth of seven.8 per cent in the January-March quarter whereas for the complete monetary yr 2023-24, the growth fee works out to a stellar 8.2 per cent — up from 7 per cent in FY 2022-23.

The excessive growth fee has been pushed by a robust efficiency of the manufacturing and mining sectors, in accordance to the Ministry of Statistics.

(With inputs from IANS)