India's FY24 growth projected to reach 7.5%: World Bank

Output growth in India is expected to hit 7.5 per cent in fiscal 2023-24 (FY24)—slightly lower than 7.6 per cent estimated by the country’s National Statistical Office—before returning to 6.6 per cent over the medium term, with robust industrial activity expected, according to ‘Jobs for Resilience’, the latest South Asia Development Update released by the World Bank.

India’s near-term growth pickup depends on the public sector, whereas private investment, in particular, continues to be weak. “Efforts to rein in elevated debt, borrowing costs, and fiscal deficits may eventually weigh on growth and limit the government's ability to respond to increasingly frequent climate shocks,” The World Bank cautioned.

"South Asia's growth prospects remain bright in the short run, but fragile fiscal positions and increasing climate shocks are dark clouds on the horizon," said Martin Raiser, World Bank vice president for South Asia.

"To make growth more resilient, countries need to adopt policies to boost private investment and strengthen employment growth," he added.

A mild recovery in Pakistan is projected, while in Sri Lanka output growth is expected to increase to 2.5 per cent in 2025.

In Bangladesh, output is expected to rise by 5.7 per cent in FY25, with high inflation and restrictions on trade and foreign exchange constraining economic activity.

Fibre2Fashion News Desk (DS)