The Indian economy is growing at a good pace

On September 3, the World Bank (WB) raised India's growth forecast to 7% from 6.6% for the 2024-2025 fiscal year.

World Bank raises India's growth forecast for fiscal 2025. (Source: The Economic Times)

The South Asian country is the fastest growing economy in fiscal 2024 at 8.2% and is currently growing at a healthy pace, said Auguste Tano Kouame, World Bank Country Director for India.

“India needs to diversify its export basket and leverage global value chains to achieve $1 trillion worth of merchandise exports by 2030,” the WB official added.

The bank expects India’s medium-term outlook to remain positive, with growth estimated to remain strong in fiscal 2026 and 2027.

The debt-to-GDP ratio is projected to decline from 83.9% in fiscal 2024 to 82% in fiscal 2027. The current account deficit is expected to remain at 1-1.6% of GDP through fiscal 2027.

“India has taken a proactive approach to free trade agreements. Its strong growth prospects coupled with falling inflation will help reduce extreme poverty,” Mr. Kouame added.

New Delhi can further boost growth by tapping into global trade potential.”

According to the World Bank Country Director for India, apart from its dominant sectors such as information technology, business services and pharmaceuticals, the country can diversify its export basket with increasing growth in textiles, apparel, footwear, electronics and green technology exports.

Mr. Kouame also affirmed that global growth is expected to remain low compared to pre-pandemic levels.

Source: https://baoquocte.vn/wb-kinh-te-an-do-dang-tang-truong-voi-toc-do-tot-284899.html