Oct 11, 2024 08:45 AM IST
Global agencies like the IMF and ADB also project strong growth, with India’s economy positioned as the fastest-growing among emerging markets.
The World Bank has raised India’s economic growth forecast from 6.6 per cent to 7 per cent for the financial year 2024-25 citing the growth of agriculture output and policies as a major factor contributing to the employment growth in the economy.
“Growth in India is projected to reach 7.0 per cent in FY24/25 with larger-than-expected agricultural output and policies to foster employment growth contributing to strong private consumption growth,” the World Bank added in its South Asia’s Growth forecast report released on October 10.
Many global rating agencies and multilateral organisations have also revised their growth forecasts for India upward.
In July, the International Monetary Fund (IMF) has raised India’s growth projections for 2024 from 6.8 per cent to 7 per cent, reinforcing the country’s status as the fastest-growing economy among emerging markets and developing economies.
The Asian Development Bank (ADB) in September last month forecasted India’s economic growth at 7 per cent for the financial year FY2024 and 7.2 per cent for FY2025. ADB reiterated that India’s economic growth will remain robust.
ADB, in its September edition of Asian Development Outlook (ADO), highlighted that an above-average monsoon in most parts of the country will lead to strong agricultural growth, enhancing the rural economy in FY2024.
In its earlier revision, the world financing body had attributed robustness and strength in domestic demand and a rising working-age population behind its growth projections.
Going further, the global body added that the growth in South Asia is expected to increase to 6.4 percent this year, exceeding earlier projections and keeping the region on track to be the fastest-growing in the world.
Separately, the Reserve Bank of India (RBI) in its monetary policy on October 9, reiterated and projected India’s GDP growth rate for FY25 at 7.2 per cent.
According to RBI Governor Shaktikanta Das, growth for the fiscal year will be supported by robust quarterly performances.