The World Bank has revised its growth forecast for India significantly upwards, predicting a surge of 7.5% in 2024.
New Delhi, 4 April 2024
This positive outlook comes after a strong performance in the latter part of 2023, with the economy growing at an impressive 8.4%. The report attributes this robust growth to factors like increased government spending and rising investments.
India Leads South Asian Growth
According to the latest World Bank report, India’s economic strength is propelling growth across South Asia, with the region expected to expand by a healthy 6.0% in 2024. The same trend extends to Pakistan and Sri Lanka, which are projected to see recoveries after facing recent challenges.
Positive Indicators for India
The Composite Purchasing Managers Index (PMI) for India in February soared to 60.6, indicating a significant uptick in economic activity. Moreover, inflation in India has remained below the Reserve Bank of India’s target range of 2-6% since mid-2023, providing further stability
Long-Term Challenges Remain
Despite the positive outlook, concerns linger regarding fiscal sustainability and the impact of climate change. Countries like Bangladesh face potential roadblocks like inflation and trade restrictions despite a projected growth rate of 5.7% in 2024-2025. Pakistan and Sri Lanka are also projected for moderate recoveries, with growth estimates of 2.3% and 2.5% respectively. Policymakers across the region remain cautious, emphasizing the need to address these long-term challenges to ensure sustained economic prosperity.
