The World Bank has raised India’s growth forecast for Financial Year 2024-25 to seven percent, up from an earlier projection of 6.6 per cent. The international financial institution stated that the country’s economic growth will remain strong over medium term, driven by key factors such as private consumption and investment.

The statement reflects similar optimistic outlook from the International Monetary Fund (IMF), which had also revised its growth projection for India’s gross domestic product (GDP) for the Financial Year 2024-25, increasing it by 20 basis points to 7 per cent.

As per the Ministry of Statistics and Programme Implementation’s data, quarterly estimates showed that India’s GDP growth was pegged at 6.7 percent in first Quarter of the Financial Year 2024-25 mainly due to a decline in government spending as a Model Code of Conduct was put in place for the General elections 2024.