The World Bank projects India’s economy to grow by 6.7% in the upcoming fiscal year, slightly higher than the 6.5% growth expected for the current fiscal year, down from 8.2% last year.
The World Bank has forecasted a 6.7% growth for India's economy in the upcoming fiscal year, starting in April, slightly exceeding the current year's growth. According to the World Bank's Global Economic Prospects report released on Thursday, the growth rate for the current fiscal year is projected at 6.5%, a decrease from the 8.2% growth recorded in the previous year.
However, it said, "the services sector is expected to enjoy sustained expansion, and manufacturing activity will strengthen, supported by government initiatives to improve the business environment."
The World Bank reports that global GDP growth has remained stagnant at 2.7% since 2023, with projections continuing at the same rate until 2026. Amid this, India stands as the world's fastest-growing large economy.
China follows with a projected growth of 4.5% this year, which is expected to slow down to 4% in the next year.
The United States, the world’s largest economy, was estimated to have grown by 2.8% last year, with a projected slowdown to 2.3% this year and 2% in the next.
The report highlighted potential risks to the global economy, including trade tensions and tariff increases, without specifically naming US President-elect Donald Trump, who has threatened to disrupt global trade.
"Adverse trade policy shifts in major economies" could pose a risk for India, the report said.
The World Bank's GDP growth projections for India closely align with those of the United Nations, which forecasted a growth of 6.6% for the current calendar year and 6.8% for the following year.