- The World Bank has raised its growth forecast for the Indian economy to 7% for 2024-25, up from 6.6%, in its report “India Development Update: India’s Trade Opportunities in a Changing Global Context.”
- India’s growth remains strong and aligns with projections from the IMF and the ADB, forecasting 7% growth for FY-2024-25.
- India’s growth rate of 8.2% in FY 2023-24 was driven by public infrastructure investment and increased household investments in real estate.
- Also, a buoyant manufacturing sector (9.9%), and resilient services activity, compensated for agriculture’s underperformance last year.
- Urban unemployment has improved since the pandemic, with female urban unemployment falling to 8.5% in early FY 2024-25.
- However, urban youth unemployment remains high at 17%.
- India’s strong growth prospects and declining inflation rate will help reduce extreme poverty.
Dig Deeper: List initiatives taken by India to reach its US$1 trillion export target by 2030.
