Strong spectacle of the Indian economy! IMF raises India GDP forecast; Good news for Pakistan too | Top Vip News

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Indian economy GDP growth of 7.5% is expected in 2024! He world Bank has projected that the Indian economy will grow 7.5 percent in 2024, marking a revision from its previous forecast of 1.2 percent. This growth is part of a strong outlook for South Asia, where the region is expected to grow 6.0 percent in 2024, driven by strong growth in India and recoveries in Pakistan and Sri Lanka.
According to a PTI report, the World Bank’s South Asia Development Update states that South Asia is set to maintain its status as the fastest growing region globally over the next two years, with a projected growth of 6.1 % in 2025.
The World Bank has highlighted that India will be a major contributor to the region’s economy and is expected to see output growth of 7.5% in fiscal year 2023-24, followed by a moderate decline to 6.6%. in the medium term. According to the World Bank, activity in services and manufacturing is expected to remain strong.
The report also mentions positive signs in Bangladesh and Sri Lanka, with expected growth rates of 5.7% and 2.5% respectively.
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Martin Raiser, vice president for South Asia at the World Bank, has expressed optimism about the region’s growth prospects in the near term, but has warned of challenges such as fiscal vulnerabilities and climate risks.
Franziska Ohnsorge, chief South Asia economist at the World Bank, emphasized the need for policies to improve private investment and job growth to harness the demographic dividend.
India’s economic performance in the fourth quarter of 2023 exceeded expectations, with a growth rate of 8.4% driven by investments and public spending. The country’s composite Purchasing Managers’ Index (PMI) stood at 60.6 in February, well above the global average, indicating strong expansion. Inflation in India has been within the Reserve Bank’s target range, supported by stable policy rates since February 2023.
Financial conditions in India have remained favorable, with domestic credit issuance growing 14% year-on-year in December 2023. The non-performing loan ratio reduced to 3.2% and regulatory capital adequacy exceeded requirements. Despite a decline in FDI, foreign portfolio investments have increased, leading to an increase in foreign exchange reserves.
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Looking ahead, the World Bank projects that India’s output growth will reach 7.5% in fiscal year 2023-24, followed by moderation to 6.6% in fiscal year 2024-25. The slowdown is attributed to a decline in investment growth from the previous year’s high levels. However, the bank expects solid growth in the services and industrial sectors, supported by construction and real estate activities.
In the medium term, the report forecasts a decline in the fiscal deficit and public debt, supported by strong production growth and government consolidation efforts. The overall outlook suggests a positive trajectory for the Indian economy, with potential to generate growth dividends from public investments in the coming years.

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