HomeGlobal EconomyIndia's growth will be 6.2 percent in the next two fiscal years

India's growth will be 6.2 percent in the next two fiscal years


Economic growth in India will remain steady at an annual rate of 6.7 percent in the next two financial years, including the current year, i.e. the financial year starting from April 2025. This information is mentioned in the recent South Asia Growth Report of the World Bank. This information is known from the report of the Indian media Telegraph India.

According to the report, overall growth in South Asia is likely to pick up to 6.2 percent in FY2025-26, with India's strong growth playing a key role.

According to the World Bank, growth in India will remain steady at 6.7 percent per annum for the two fiscal years starting April 2025. The continuous expansion of the service sector and the improvement of the business environment by government initiatives will strengthen manufacturing activities. Aggregate investment growth will remain stable as private investment increases despite a decline in public investment.

However, India's growth is forecast to decelerate slightly to 6.5 percent in FY 2024-25 (April 2024 to March 2025). This will have the effect of slowing investment and weakening production activities. In the words of the World Bank, 'However, private consumption remains robust, largely due to improved rural incomes and a recovery in agricultural production.'

Growth in South Asia excluding India is likely to pick up to 3.9 percent in 2024. The economic recovery of Pakistan and Sri Lanka will play a major role in this, which is a result of advanced economic policies adopted in response to previous financial crises.

Regarding Bangladesh, the report said, 'Political unrest in mid-2024 disrupted economic activity and eroded investor confidence. The energy crisis and import restrictions have led to supply disruptions, which have negatively impacted the industrial sector and fueled inflation.'

Bangladesh's growth is forecast to slow to 4.1 per cent in FY 2024-25 (July 2024 to June 2025), but may pick up to 5.4 per cent in FY 2025-26. The World Bank also said, 'Investment and industrial activity are likely to remain stagnant in the short term amid political uncertainty.'



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