(MENAFN- KNN India) New Delhi, Apr 3 (KNN) The Indian economy is projected to grow at a stellar 7.5 per cent rate in the fiscal year 2023/24, according to the latest World Bank report.
This robust expansion makes India a key driver of growth in the South Asian region.
Crediting India's vibrant services and industrial sectors, the World Bank expects the nation's economic output to moderate to 6.6 per cent in 2024/25 before picking up again.
A decade-long focus on public investment is expected to yield dividends over the medium term.
"Output growth is projected to reach 7.5 per cent in FY2023/24 on the back of robust growth in Q3," stated the World Bank report.
It highlighted robust hiring, surging manufacturing activity and new export orders as positive factors.
While inflation has largely remained within the Reserve Bank's 2-6 per cent target range, the World Bank forecasts easing price pressures ahead, allowing more policy flexibility.
The government's fiscal deficit and debt levels are also projected to decline, aided by growth and consolidation efforts.
Overall, South Asia is pegged as the fastest-growing emerging market region for 2024-25, thanks to India's resilient economy. However, climate shocks and debt burdens pose risks to long-term stability.
The report recommends policies focused on boosting private investment and job creation to build more resilient growth across the region.
(KNN Bureau)
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