India's FY25 Growth Rate Projected at 7% by World Bank
The World Bank has revised its growth projection for India for FY25 to 7%, up from the earlier estimate of 6.6%. Although the economy experienced a slowdown in the first quarter of FY25 due to decreased government spending, it is anticipated to continue performing robustly.
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On Tuesday, the World Bank upgraded its growth forecast for India's economy in FY25 to 7 percent, up from the previous estimate of 6.6 percent, and highlighted that the economic growth is expected to remain robust over the medium term.
India’s GDP growth slowed to 6.7 percent in the April-June quarter, primarily due to reduced government spending during the General elections, as reported on August 30.
The Reserve Bank of India (RBI), in its August Monetary Policy Committee meeting, had anticipated a GDP growth of 7.1 percent for the first quarter of FY25.
In response to the slower GDP growth in Q1, Nomura revised its forecast for India down to 6.7 percent from 6.9 percent. Goldman Sachs and J.P. Morgan have kept their FY25 growth projections for India steady at 6.5 percent.
Recent data also revealed a decline in the primary sector, which includes agriculture and mining, with growth dipping to 2.7 percent year-on-year compared to 4.2 percent in the same period of FY24.
While the secondary sector, covering manufacturing and electricity, saw a strong annual growth of 8.4 percent, the tertiary sector, which includes services, fell to 7.2 percent annually, down from 10.7 percent in FY24.
