The World Bank has revised India's growth forecast for FY25 to 7 per cent from 6.6 per cent earlier in its latest India Development Update released on Tuesday.
“Growth was boosted by public infrastructure investment and an upswing in household investments in real estate. On the supply side, it was supported by a buoyant manufacturing sector, which grew by 9.9 per cent, and resilient services activity, which compensated for underperformance in agriculture,” the World Bank report said.
World Bank’s country director for India, Auguste Kouame, said that India is becoming more dynamic than ever in a challenging environment and does not face the risk of falling into the middle-income trap if it continues its policies and reforms.
“India has had success despite adversity. I don’t see the growth slowing down to the point it is trapped,” Kouame said.
India grew at 8.2 per cent in FY24, becoming the fastest-growing major economy in the world.
Recently, the International Monetary Fund (IMF) had raised India’s Gross Domestic Product (GDP) growth forecast for the current financial year to 7 per cent. Moody’s Ratings has also raised India’s GDP growth projection for calendar year 2024 to 7.2 per cent from 6.8 per cent earlier.
