A public facility in India. Representational image. Photo courtesy: Free Press Journal

The World Bank has come out with a forecast for the Indian economy. According to the global organisation, the country is expected to grow at 6.7 percent in 2024–25, or FY25.

A public facility in India. Representational image. Photo courtesy: Free Press Journal

This comes a week after the end of the Lok Sabha (general) election. The newly elected government has indicated towards retaining its overall policy approach in governance and its policies, particularly economic policies.

According to reports, this development makes India the fastest-growing major economy in the world. In the recent past, the World Bank has predicted the growth rate for neighbouring China as well.

According to those estimates, the second-largest economy is expected to decelerate to 4.8 percent in 2024 from 5.2 percent in 2023.

According to the World Bank’s Global Economic Prospects report, the Global economy is expected to grow at 2.6 percent in 2024. It is an increase from the 2.4 percent growth rate for 2024 the World Bank had predicted in January.

Although steady, the world economy is still below the pre-Covid rate of 3.1 percent. This is mostly because the major economies other than the US, especially the economies in Western, Central, and Southern Europe, are still in the process of recovery and are largely witnessing a sluggishness in their growth.

South Asia to grow at 6.2 percent

In a statement issued by the World Bank, Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President, said, “Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying.”

In fact, around about 80 percent of the global population will be witnessing a sluggish growth.

Meanwhile, India’s growth is closely aligned to the region’s growth, as South Asia’s economy is expected to grow at 6.2 percent in 2024 and is expected to remain steady at 6.2 percent in 2025 as well.

(The article is published under a mutual content partnership arrangement between The Free Press Journal and Connected to India)