The Indian economy is projected to grow at 7.5 per cent in 2024, the World Bank has said, revising its earlier projections for the same period by 1.2 per cent. The World Bank has raised India’s economic growth forecast by 1.2 per cent to 7.5 per cent for 2023-24, on the back of robust activity in services and industry in its latest update for South Asia.

The increase in the projected growth rate for the Indian economy comes following the surprise 8.4 per cent surge in the country’s GDP during the Oct-Dec quarter. Finance Minister Nirmala Sitharaman has stated that the economy is on track to post an 8 per cent growth rate in the Jan-March quarter.

However, the World Bank expects the growth rate to moderate to 6.6 in 2025. The expected slowdown mainly reflects a deceleration in investment from its elevated pace in the previous year.Over the medium term, fiscal deficit and government debt in India are projected to decline, supported by strong GDP growth and consolidation efforts by the Central government.