World Bank Raises India’s FY25 GDP Forecast To 7% From 6.6%

The World Bank has revised its growth forecast for India, upgrading it to 7% for the financial year 2024-25, up from its earlier estimate of 6.6%. The adjustment reflects the strong performance of the Indian economy, which was the fastest-growing major economy in FY24 with an 8.2% growth rate. Looking ahead, the World Bank expects India's medium-term outlook to remain positive, with strong growth projected for FY26 and FY27. Kouame highlighted the importance of diversifying India’s export basket and leveraging global value chains to achieve $1 trillion in merchandise exports by 2030. "India needs to diversify its export basket and leverage global value chains to reach $1 trillion in merchandise exports by 2030," Kouame stated. The World Bank also projects a gradual decline in India’s debt-to-GDP ratio, from 83.9% in FY24 to 82% by FY27. Meanwhile, the current account deficit is expected to stay within the range of 1-1.6% of GDP up to FY27.