India to Remain Fastest Growing Economy with 6.7% Growth

India to Remain Fastest Growing Economy with 6.7% Growth

India will continue to be the world’s fastest-growing economy, with a projected steady growth rate of 6.7% for the next three fiscal years, according to the World Bank.

The World Bank’s growth projections for India are 6.7% for FY26 and 6.8% for FY27, with the 6.6% growth forecast for FY25 being maintained. Although there may be a little slowdown, India’s growth rate will still be the greatest among the world’s biggest economies.

The report highlights that the recovery of agriculture and falling inflation will contribute to private consumption growth. Meanwhile, slowing government spending is projected to be in line with measures to cut current expenditure relative to GDP.

Strong domestic demand and an increasing working-age population led the International Monetary Fund (IMF) to increase India’s growth prediction for 2024–25 from 6.5% to 6.8%. In addition, the RBI raised its GDP growth prediction for the current fiscal year to 7.2%, with quarterly growth rates of 7.3%, 7.2%, and 7.2% anticipated.

The GDP of India increased at a solid 7.8% in the first three months of fiscal year 2023–24, bringing the yearly growth rate to 8.2%, which is an increase significantly above 7% in the previous year.