Indian economy to grow at 6.7% for next two financial years, says World Bank

India’s economic growth is projected to grow at a rate of 6.7% over the next two financial years, a World Bank report said on Thursday.

The report titled “Global Economic Prospects” said that the services sector is expected to enjoy sustained expansion. Manufacturing activities would strengthen, supported by government initiatives aimed at improving the business environment, it added.

“Investment growth is projected to be steady, with moderating public investment offset by rising private investment,” the international financial institution added.

The report examines global economic developments and prospects, with a special focus on emerging markets and developing economies. It is published twice a year, in January and June.

The global economy is projected to grow at 2.7% in both 2024-’25 and 2025-’26, the report said. This is the same rate as the financial year 2024.

The report, however, noted that this rate was less than the 3.1% growth rate recorded in the decade before the Covid-19 pandemic.

“The global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development – with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters,” the World Bank said.

As per the report, most low-income countries are unlikely to transition to middle-income status…

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