India's Economic Surge: World Bank, IMF, and ADB Elevate Growth Forecasts

The World Bank has revised India’s economic growth forecast to 7% for 2024-25, citing increased agricultural output and employment-focused policies. Other global bodies, including the IMF and ADB, have also upped their forecasts, reinforcing India’s position as a leading emerging market economy with promising growth prospects.

India's economic outlook received a significant boost as the World Bank adjusted its growth forecast from 6.6% to 7% for the financial year of 2024-25. This optimistic revision attributes the rise to an upsurge in agricultural productivity and employment-focused policies, fueling private consumption growth. The World Bank detailed these findings in its report covering South Asia, released on October 10.

International organizations have echoed this upward trend in forecasts. In July, the IMF lifted its 2024 growth expectations for India from 6.8% to 7%, underscoring India's role as the world's fastest-growing economy among emerging and developing nations.

The Asian Development Bank further projected a robust growth trajectory, estimating India's economic growth at 7% for FY2024 and 7.2% for FY2025. The ADB, in its recent Asian Development Outlook publication, noted that favorable monsoon conditions would invigorate agricultural activities, thus strengthening the rural economy in FY2024.

Previously, these forecasts were buoyed by resilient domestic demand and a favorable demographic profile characterized by a rising working-age population. The World Bank anticipates South Asia's growth to accelerate to 6.4% this year, outperforming previous estimates and solidifying the region's leading growth status globally.

Concurrently, the Reserve Bank of India reaffirmed its GDP growth projection for FY25 at 7.2%, with support from strong quarterly economic performances as highlighted by RBI Governor Shaktikanta Das in the latest monetary policy review.

(With inputs from agencies.)