India’s Economy To Grow By 6.7% In Next Two Fiscal Years: World Bank

The World Financial institution initiatives India’s economic system to develop by 6.7 per cent within the subsequent fiscal 12 months beginning in April, barely larger than within the present fiscal 12 months, and persevering with to high the expansion tally. The Phrase Financial institution’s World Financial Prospects launched on Thursday estimated the present fiscal 12 months’s development fee at 6.5 per cent, down from the 8.2 per cent within the earlier interval.

But it surely mentioned that “the providers sector is predicted to get pleasure from sustained growth, and manufacturing exercise will strengthen, supported by authorities initiatives to enhance the enterprise surroundings”, buoying the expansion projections of 6.7 per cent for the subsequent two fiscal years.

With international gross home product development fee caught at 2.7 per cent since 2023 and into the projections until 2026 in response to the Financial institution, India is the world’s quickest rising massive economic system.

China follows it with a projected development of 4.5 per cent this calendar 12 months, and slowing right down to 4 per cent subsequent 12 months.

The world’s largest economic system, the US, was estimated to have grown by 2.8 final 12 months with the projected development slowing right down to 2.3 per cent this 12 months and a pair of per cent subsequent 12 months.

The report warned concerning the dangers to the world economic system from commerce tensions and tariff hikes with out naming the US President-elect Donald Trump, who has threatened to upend world commerce.

“Hostile commerce coverage shifts in main economies” may pose a threat for India, the report mentioned.

The World Financial institution projections for India’s GDP development hew carefully to the United Nations projections launched final week — 6.6 per cent for this calendar 12 months and 6.8 per cent for subsequent 12 months.

The World Financial institution attributed the drop in India’s development fee from 8.2 per cent in 2023-24 to six.5 per cent within the present fiscal 12 months to “a slowdown in funding and weak manufacturing development”.

(Apart from the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)