The World Bank has upgraded its estimate for India’s economic growth for FY25, raising it from 6.6% to 7%. Auguste Tano Kouame, the World Bank’s Country Director for India, noted that the Indian economy is “growing at a good pace,” building on past momentum. Despite this, the World Bank highlighted that global growth is expected to remain subdued compared to pre-pandemic levels.While India’s economic growth slowed to 6.7% in the April-June quarter due to reduced government spending during national elections, the World Bank forecasts a strong medium-term growth rate, averaging 6.7% over the next two fiscal years. However, challenges such as high urban unemployment, currently averaging 17%, continue to pose risks to sustained economic progress.
