New Delhi:
India’s Economic Growth Projection: The World Bank said that despite challenging global conditions, the Indian economy is on the path of development. Despite difficult external conditions, the country remains the fastest growing major economy. Growth took place at a pace of 8.2 percent in FY 23-24.
In a report on Tuesday, the World Bank said that the growth rate is expected to reach 7 percent in the financial year 2024-25 and it will remain strong in the financial year 2025-26 as well as in the financial year 2026-27.
Current account deficit expected to be around 1-1.6% of GDP
At the same time, with strong revenue growth and further fiscal consolidation, the debt-GDP ratio is estimated to decline from 83.9 percent in FY23/24 to 82 percent by FY26/27. According to the World Bank’s latest India Development Update (IDU), the current account deficit is expected to be around 1-1.6 percent of GDP by FY26/27.
“Apart from IT, business services and pharma, India’s exports could grow in textiles, apparel and footwear as well as electronics and green technology products,” he said.
There has been improvement in urban unemployment in the country
According to the report, investment in public infrastructure and increased domestic investment in real estate boosted growth in the country. Since the pandemic, urban unemployment in the country has gradually improved, especially for women workers. At the beginning of FY 24/25, the female urban unemployment rate fell to 8.5 percent.
National Logistics Policy and Digital Initiatives boosted the economy
The report also highlights the important role of trade in promoting growth. It says that India has increased its competitiveness through the National Logistics Policy and digital initiatives, which are reducing trade costs. However, the report says that to reach its commodity export target of one trillion dollars by 2030, India needs to diversify its export basket and take advantage of global value chains.
According to senior economists and report co-authors Nora Diehl and Ran Li, to create more trade-related jobs, India can integrate more deeply into global value chains. This will also create opportunities for innovation and productivity growth.
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