The World Bank has revised its growth forecast for India, raising it to 7% for fiscal year 2024-25, up from its earlier estimate of 6.6%. The adjustment reflects the strong performance of the Indian economy, which was the fastest growing major economy with a growth rate of 8.2% in FY24.
Looking ahead, the World Bank apprehend India’s medium-term outlook to remain positive, with strong inflation projected for FY26 and FY27. Koume highlighted the importance of diversifying India’s export basket and leveraging global value chains to achieve $1 trillion merchandise exports by 2030.
“India needs to diversify its export basket and leverage global value chains to reach $1 trillion in merchandise exports by 2030,” Koume said. The World Bank also estimates India’s debt-to-GDP ratio to decline from 83.9% in FY2024 to 82% by FY27. Meanwhile, the current account deficit is expected to remain in the range of 1-1.6% of GDP by FY27.
