World Bank Revises India's Growth Forecast to 7%

The World Bank has updated its growth forecast for the Indian economy, predicting a 7% increase for the current fiscal year. This revision is attributed to recovery in the agriculture sector and rising rural demand, despite global economic challenges. Key factors include a strong monsoon season and private consumption.

On Tuesday, the World Bank raised its growth forecast for the Indian economy to 7% for the current fiscal year. This adjustment is supported by a recovery in the agricultural sector and an uptick in rural demand.

In June, the World Bank had projected a growth rate of 6.6% for India for FY24. In its latest report, the World Bank cited strong performance despite challenging global conditions. Senior Economist Ran Li attributed the revised GDP forecast to improvements in monsoon and private consumption.

The growth rate for India, which is a major component of South Asia's economy, is expected to stay robust at 7% in 2024-25. While there will be a slight moderation in industry, agriculture recovery is expected to drive rural private consumption. Additionally, the service sector is likely to remain strong.

(With inputs from agencies.)