India’s Economy to Grow Steadily at 6.7% for Two Years

The World Bank expects India to grow at 6.7% for the next two fiscal years, starting April 2025. This growth stems from the expanding services sector and stronger manufacturing, bolstered by government efforts to improve the business climate.

In FY 2024-25, growth might slow slightly to 6.5% due to reduced investment and weak manufacturing. However, private consumption stays strong, driven by better rural incomes and agricultural recovery.

Excluding India, South Asia’s growth will rise to 6.2% in 2025-26. Pakistan and Sri Lanka will contribute to this growth. Bangladesh faces challenges due to political unrest and supply issues, with growth expected to fall to 4.1% in FY 2024-25, before recovering to 5.4% in FY 2025-26.

India’s robust performance will drive growth in South Asia, despite global economic hurdles.