New Delhi: India’s economic growth rate will slow down in the next financial year, the World Bank has said. In this regard, India’s economic growth is expected to be 6.9 percent in the current financial year, while the growth rate in the next financial year will slow down to 6.6 percent.
However, India is one of the seven fastest growing economies in the world.In the current fiscal year, India is expected to grow by 6.9 percent. The growth was 8.7 percent in the previous year. Growth is projected to be 6.1 percent in FY 2024-25.
Slowdown and uncertainty in global economic growth will affect India’s export and investment growth. The government has increased infrastructure spending and various business facilities. This will boost private investment and increase productivity. In the first half of last fiscal, economic growth was 9.7 percent. It was set to highlight strong private consumption and steady investment growth.
Inflation, in the past year, has mostly remained above the RBI’s target of 6 percent. Thus, the interest rate was raised to 2.5 percent during the period from May to December. The country’s goods trade deficit has also increased.
India sold more of its foreign exchange reserves to keep the rupee from falling further against the dollar.
For India, interest rate hikes and fiscal tightening are expected to be less severe than most other countries in its region. Sufficient policy-based measures by the government can be expected to help preserve the ongoing economic recovery and boost investment.
This is stated by the World Bank.
Subscribe Dinamalar channel for new news