According to the latest growth projections of the World Bank released for South Asia, India’s economic growth is estimated to be 6.7 percent annually in the next two financial years starting from April 2025. The World Bank said on Thursday that in 2025-26, South Asia The growth is expected to increase to 6.2 percent. India is also expected to see strong growth. It has been said in this report that the growth rate in India is estimated to be 6.7 percent per year in the next two financial years starting from April 2025.
The World Bank said that the service sector is expected to expand continuously. Along with this, manufacturing activity will also strengthen. Government initiatives to improve the business environment will also be beneficial. Stable growth in investment is expected. It has also been said in this report that the increase in private investment in the country will compensate for the slowdown in government investment.
This report further states that due to slowdown in investment and weak production activity, India’s growth is expected to decline to 6.5 percent in the financial year 2024/25 (April 2024 to March 2025). However, private consumption growth remains good. This has improved mainly due to improvement in rural income and improvement in agricultural production.
Excluding India, the growth rate in South Asia is estimated to increase to 3.9 percent in 2024. This mainly reflects the improvements in Pakistan and Sri Lanka. These countries have benefited from better economic policies adopted to overcome economic difficulties.
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The report said political turmoil in Bangladesh in mid-2024 affected economic activity and reduced investor confidence. Supply was disrupted due to energy shortages and import restrictions. This weakened industrial activity and increased pressure on prices.
It further says that if we keep India aside, the growth rate in the rest of South Asia is expected to be 4 percent in 2025 and 4.3 percent in 2026. However, this year’s forecast is slightly lower than June. The main reason for this is the downgrading of Bangladesh amid economic and policy uncertainty.