World Bank raises India growth forecast to 7% for current fiscal year from 6.6%

THE World Bank on Tuesday (Sep 3) raised its Indian economic growth forecast to 7 per cent for the current fiscal year, from an earlier estimate of 6.6 per cent, helped by government spending on infrastructure.

India’s economic growth slowed to 6.7 per cent in April-to-June period as a decline in government spending during national elections weighed, data showed last week.

The Asian nation’s central bank expects the economy to grow 7.2 per cent in the fiscal year 2024/25.

India’s medium-term economic growth rate will remain strong at an average of 6.7 per cent over the next two fiscal years, the World Bank said, adding it expects private investment to gradually come in and aid consumption recovery.

The main challenges to India’s economy include job creation. The urban unemployment rate remains high at an average of 17 per cent, the World Bank said. REUTERS