The World Bank projects India&rsquo;s economy to grow by 6.7% in the next fiscal year starting in April, slightly higher than in the current fiscal year, and continuing to top the growth tally.
The Word Bank&rsquo;s Global Economic Prospects released on Thursday estimated the current fiscal year&rsquo;s growth rate at 6.5%, down from the 8.2% in the previous period.
But it said that &ldquo;the services sector is expected to enjoy sustained expansion, and manufacturing activity will strengthen, supported by government initiatives to improve the business environment,&rdquo; buoying the growth projections of 6.7% for the next two fiscal years.
With global gross domestic product growth rate stuck at 2.7% since 2023 and into the projections till 2026 according to the Bank, India is the world&rsquo;s fastest growing large economy.
China follows it with a projected growth of 4.5% this calendar year, and slowing down to 4% next year.
The world&rsquo;s largest economy, the US, was estimated to have grown by 2.8 last year with the projected growth slowing down to 2.3% this year and 2% next year.
The report warned about the risks to the world economy from trade tensions and tariff hikes without naming the US President-elect Donald Trump, who has threatened to upend world trade.
&ldquo;Adverse trade policy shifts in major economies&rdquo; could pose a risk for India, the report said.
The World Bank projections for India&rsquo;s GDP growth hew closely to the United Nations projections released last week&mdash;6.6% for this calendar year and 6.8% for next year.
The World Bank attributed the drop in India&rsquo;s growth rate from 8.2% in 2023&ndash;24 to 6.5% in the current fiscal year to &ldquo;a slowdown in investment and weak manufacturing growth&rdquo;.
&mdash;IANS

Latest estimate puts current fiscal’s growth at 6.5%, down from 8.2% in the previous period

India’s Economy to Grow by 6.7%: World Bank

Latest estimate puts current fiscal’s growth at 6.5%, down from 8.2% in the previous period

January 17, 2025 | 10:47 IST