India’s FY25 GDP growth to be 7% – World Bank

The World Bank has raised its growth forecast for India’s economy to 7 % for the current financial year (FY25), up from an earlier projection of 6.6% according to a statement released on Tuesday. This revision comes amid expectations of stronger economic performance, driven by key factors such as private consumption and investment. The report highlights that while the economy remains resilient, achieving the ambitious goal of $1 trillion in merchandise exports by 2030 will require strategic diversification and deeper integration into global value chains.

“India’s robust growth prospects, along with declining inflation, will contribute to reducing extreme poverty,” said Auguste Tano Kouame, the World Bank’s country director in India.

“To further accelerate growth, India needs to harness its global trade potential.

Beyond its strengths in IT, business services, and pharmaceuticals, India should diversify its export basket by expanding in sectors such as textiles, apparel, footwear, electronics, and green technology products.”

The World Bank added that it expects a gradual increase in private investment and a recovery in consumption. Meanwhile, it pointed out that job creation remains the main challenge to India’s economic growth. The urban unemployment rate remains high at an average of 17 per cent, the World Bank said. Despite global economic uncertainties, India’s growth prospects continue to be resilient. According to the latest India Development Update (IDU), the country’s economy has maintained strength, driven by factors such as improved monsoon conditions and a recovery in private consumption.

Ran Li, a senior economist at the World Bank, highlighted that these factors have contributed to an upward revision of India’s gross domestic product (GDP) forecast. (www.business-standard.com/)

The post India’s FY25 GDP growth to be 7% – World Bank appeared first on DailyNews.