“India's Growth Forecast to Top 7% as Rural Demand Rebounds”
The World Bank has projected India's economy to expand by 7% in the current financial year backed by a recovery in the agriculture sector and rural consumption. According to the latest World Bank report, India's strong growth will continue despite challenging global headwinds.
The report states that a rebound in farm production will partially offset a mild slowdown in industrial activity. Meanwhile, the services segment is expected to remain robust as per the forecasts. Private spending in rural areas will revive thanks to an anticipated pickup in agriculture after two years of pandemic disruptions.
India, which accounts for the bulk of South Asia's economic activity, will maintain its growth rate of 7% in 2024-25, as per the World Bank's India Development Update. A resurgence in farm output will balance out a slight moderation in factory output, while services will sustain momentum. This comes as a positive sign for the country's recovery efforts.
