India to Remain Fastest-Growing Economy: World Bank Report

According to a World Bank report released on Tuesday, India is projected to maintain its rank as the fastest-growing major economy, with a consistent growth rate of 6.7% over the next three years, including the current financial year.

Recent Economic Performance Report World Bank:

In fiscal year 2023/24, India’s growth is estimated to have surged to 8.2%, 1.9 percentage points higher than estimated in January. This data comes from the World Bank’s latest Global Economic Prospects report.

Global Growth Trends:

The report predicts that global growth will stabilize at 2.6% in 2024 and increase slightly to an average of 2.7% in 2025-26. However, this is still below the 3.1% average growth rate observed in the decade preceding the COVID-19 pandemic.

“The forecast implies that throughout 2024-26, countries accounting for more than 80% of the world’s population and GDP would still be growing more slowly than they did in the decade before COVID-19,” the report stated.

South Asia Region Outlook:

In the South Asia region (SAR), growth is expected to slow from 6.6% in 2023 to 6.2% in 2024. This slowdown is primarily attributed to India’s growth moderating from a high base in recent years.

Despite this, the region’s growth is forecast to remain at 6.2% in 2025-26. Other regional economies, such as Bangladesh, Pakistan, and Sri Lanka, are also expected to show robust growth at varied rates.

India’s Economic Projections by World Bank:

India’s growth rate is expected to moderate slightly but will remain robust. After the high growth rate in FY2023/24, the economy is projected to grow steadily at 6.7% per year on average over the next three fiscal years starting from FY2024/25. This moderation is mainly due to a slowdown in investment from a high base.

“However, investment growth is still expected to be stronger than previously envisaged and remain robust over the forecast period, with strong public investment accompanied by private investment,” the report noted.

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