World Bank Pegs India's Growth Rate At 6.7%; Country To Remain The Fastest Growing Economy

The World Bank has come out with a forecast for the Indian economy. According to the global organisation, India is expected to grow at 6.7 per cent in 2024–25, or FY25.

India: Fastest Growing

This comes a week after the end of the Lok Sabha election. The newly elected government has indicated towards retaining its overall policy approach in governance and its policies, particularly economic policies.

According to reports, this development makes India the fastest-growing major economy in the world. In the recent past, the World Bank has placed a forecast for neighbouring China as well.

World Economy To Grow at 2.6%

According to those estimates, the second-largest economy is expected to grow by 4.5 per cent in 2024 and 4.3 per cent, indicating a sluggish growth.

According to the World Bank's Global Economic Prospects report, the Global economy expected to grow at 2.6 per cent in 2024. Later on, in 2025, the world's economy is expected to grow at 2.7 per cent.

Although steady, it is not all moonlight and roses for the world at large, as it is still below the pre-Covid rate of 3.1 per cent.

In addition, it should also be noted that major economies other than the US, especially the economies in Western, Central, and Southern Europe, are still in the process of recovery and are largely witnessing a sluggishness in their growth.

South Asia to Grow At 6.2%

In a statement issued by the World Bank, Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President, said, “Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying.”

In fact, around about 80 per cent of the global population will be witnessing a sluggish growth.

India's growth is closely aligned to the region's growth, as South Asia's economy is expected to grow at 6.2 per cent in 2024 and is expected to remain steady at 6.2 per cent in 2025 as well.