Washington DC, April 3 (ANI): The World Bank has projected India’s growth to reach 7.5% in the financial year 2023-24, with South Asia’s overall growth expected to be strong at 6.0% in 2024, driven primarily by robust growth in India.
The latest South Asia Development Update by the World Bank highlighted that India’s output growth is anticipated to touch 7.5% in FY23-24 before stabilizing at 6.6% over the medium term, with services and industry sectors expected to maintain strong activity.
Martin Raiser, the World Bank Vice President for South Asia, emphasized the need for policies to enhance private investment and bolster employment growth to ensure sustained and resilient growth in the region. The report also sheds light on the challenges that could impede long-term growth, including fiscal vulnerabilities and climate shocks.
While projecting a mild recovery in Pakistan and Sri Lanka, the report foresees a growth of 2.3% in Pakistan’s economy in FY24-25 and a rise of 2.5% in Sri Lanka’s output in 2025. Bangladesh is expected to see a 5.7% increase in output in FY24/25, albeit with inflation and trade restrictions posing constraints.
To foster firm growth and boost employment, the World Bank advises adopting policies that enhance trade openness, access to finance, business climates, institutions, education, and women’s economic activity. These measures are deemed crucial for augmenting growth, productivity, and climate resilience while creating space for public investments in climate adaptation.
In a related development, Morgan Stanley has revised India’s GDP growth forecast upwards for FY24-25 to 6.8%, citing the nation’s strength and stability as key factors driving economic growth.
The combined projections from the World Bank and Morgan Stanley underscore the positive trajectory of India’s economic landscape, with a focus on sustainable growth and resilience.
