World Bank Echoes IMF: Boldly Revises India’s FY25 GDP Growth Forecast to an Optimistic 7% | Economy & Policy News

World Bank Raises India’s FY25 Growth Forecast to 7%, Echoing IMF Optimism

The World Bank has upgraded its growth forecast for India’s economy to 7% for the fiscal year 2024-25 (FY25), up from its previous estimate of 6.6%. This revision is attributed to anticipated robust economic performance, fueled by strong private consumption and investments.

In parallel, the International Monetary Fund (IMF) also raised its growth projection for India to 7% for FY25 in its July update, boosting the forecast by 20 basis points. The IMF cited increased private consumption, especially in rural areas, as a significant factor for this upward adjustment.

The IMF’s World Economic Outlook (WEO) update mentioned that the upward revision reflects carryover effects from improved growth estimates for 2023. However, the IMF maintained its earlier forecast of 6.5% growth for FY26, made in April.

Despite these positive projections, the National Statistical Office (NSO) reported a slight slowdown in GDP growth for the April-June quarter of this year. The growth rate decelerated to 6.7%, mainly due to reduced government spending related to the implementation of the Model Code of Conduct ahead of general elections. This follows a robust 8.2% GDP growth in the previous financial year, buoyed by a 7.8% surge in the final quarter of FY24.

Additionally, the Reserve Bank of India (RBI) projects the Indian economy to grow at 7.2% for FY25, indicating broad-based optimism about the nation’s economic prospects.

First Published: Sep 03, 2024 | 12:36 PM IST

Original Story https://www.business-standard.com/economy/news/world-bank-follows-imf-revises-india-s-fy25-gdp-growth-forecast-to-7-124090300443_1.html
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