World Bank Forecasts India's FY25 GDP Growth At 6.6%
The economy's estimated to grow at 6.7% per fiscal from 2024 through 2026.
India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate.
The World Bank forecasts India's GDP to grow by 6.6% in FY25, it said in its Global Economic Prospects report for June.
For FY26 and FY27, growth is projected at 6.7% and 6.8%, respectively. It's estimated to grow at an average of 6.7% per fiscal, from 2024 through 2026—making South Asia the world’s fastest-growing region.
After a high growth rate in FY24, this moderation is mainly due to a slowdown in investment from a high base. However, investment growth is expected to remain stronger than previously expected over the forecast period, aided by public and private investment.
Private consumption growth is expected to benefit from recovering agricultural production and declining inflation. Government consumption is projected to grow only slowly, in line with its aim of reducing current expenditure relative to GDP.
The growth of domestic demand remained robust, with a surge in investment, including in infrastructure, offsetting a moderation of consumption growth as, after the pandemic, pent-up demand eased, it said.
In India, the fiscal deficit is projected to shrink relative to GDP, partly because of increased revenue generated by the authorities’ efforts to broaden the tax base, the report said.
