The World Bank has projected 6.7 per cent growth for India, surpassing global growth of 2.7 per cent. The January 2025 edition of the World Bank’s Global Economic Prospects (GEP) report stated that India is set to dominate the global economic landscape, maintaining its status as the fastest-growing large economy for the next two fiscal years.
The GEP report credits this extraordinary momentum to a thriving services sector and a revitalised manufacturing base, driven by transformative government initiatives. From modernising infrastructure to simplifying taxes, these measures are fuelling domestic growth and positioning India as a cornerstone of global economic stability. The report also forecasts that China’s economic growth will decelerate to 4 per cent next year.
The report highlights that growth in the country’s services sector is expected to remain robust, while manufacturing activity will strengthen. Private consumption in the country is also likely to gain momentum, driven by a stronger labour market, increased access to credit, and lower inflation.
Complementing the World Bank report, the latest update from the International Monetary Fund’s (IMF) World Economic Outlook (WEO) also reinforces India’s strong economic trajectory. The IMF forecasts India’s growth to remain robust at 6.5 per cent for the financial year 2025 and 2026.
