According to the latest update from the World Bank, the Indian economy is anticipated to expand by 7.5 percent in the year 2024, marking a revision of the earlier projections by 1.2 percent for the same period.
This upward adjustment in India's economic growth forecast to 7.5 percent for 2023-24 is attributed to the robust performance observed in both the services and industry sectors in South Asia, as highlighted in the World Bank's recent update.
The surge in India's GDP by 8.4 percent during the October-December quarter has contributed significantly to the raised growth projections. Finance Minister Nirmala Sitharaman has expressed confidence in the economy's trajectory, suggesting an expected growth rate of 8 percent for the January-March quarter.
However, looking ahead, the World Bank foresees a moderation in the growth rate to 6.6 percent in 2025, primarily due to a slowdown in investment compared to the previous year.
Over the medium term, there is an expectation of a decline in fiscal deficit and government debt in India, supported by strong GDP growth and the consolidation efforts of the Central government.
The World Bank's South Asia Development Update, released on April 2, underscores a positive outlook for the region, largely driven by India's robust performance. It predicts South Asia to maintain its status as the world's fastest-growing region for the next couple of years, with a projected growth rate of 6.1 percent in 2025.
Furthermore, Bangladesh is forecasted to experience a rise in output by 5.7 percent in 2024-25, while Pakistan's economy is expected to grow by 2.3 percent, and Sri Lanka's GDP growth is anticipated to increase by 2.5 percent during the same period.
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