India’s economic growth remains robust, with the country projected to be the fastest-growing large economy globally, according to the latest Global Economic Prospects report by the World Bank. Despite a slight slowdown, India is forecasted to expand by 6.6% this year, down from 8.2% in 2023. This growth is being primarily driven by strong domestic demand and increased investment in the country. The report highlights that India’s growth is propelling South Asia to be the fastest-growing region. The World Bank’s projections suggest that India will maintain its growth momentum in the coming years, with an average growth rate of 6.7% expected over the next three fiscal years starting in FY 2024/25. The report also emphasizes that the pace of expansion may moderate due to a slowdown in investment from a high base. However, investment growth is anticipated to remain robust, supported by both public and private investments. In addition to this, private consumption growth is expected to benefit from a recovery in agricultural production and decreasing inflation rates. The report also touches upon global inflation trends, stating that it is expected to moderate in the coming years. In India, inflation has remained within the Reserve Bank’s target range of 2 to 6 per cent since September 2023. While global interest rates are likely to remain high, several central banks are expected to be cautious in lowering policy interest rates. Overall, the World Bank’s report underscores India’s significant economic growth amidst a challenging global economic environment, positioning the country as a key player in the world economy.
