In its latest India Development Update (IDA), the World Bank has raised India’s 2024-25 GDP growth forecast for the economy to 7%, from 6.6% estimated earlier this year.
- The projection is in sync with predictions from the International Monetary Fund and Asian Development Bank, but a tad lower than the 7.2% uptick projected by the RBI and Fitch Ratings.
- The India Development Update (IDU) observes that India remained the fastest-growing major economy and grew at a rapid clip of 8.2 percent in FY23/24.
- The World Bank estimates global growth to be the same as last year’s 2.6% pace, way below pre-pandemic levels.
- With a narrowing of India’s current account deficit and strong foreign portfolio investment inflows, foreign exchange reserves reached an all-time high of $670.1 billion in early August.
- The IDU recommends a three-pronged approach towards achieving the $1 trillion merchandise export target by reducing trade costs further, lowering trade barriers, and deepening trade integration.
