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World Bank GEP Report

  • 20 Jan 2025

According to the January 2025 edition of the World Bank’s Global Economic Prospects (GEP) report projects India's economy to grow at a steady rate of 6.7% in both FY26 and FY27, significantly outpacing global and regional peers.

Key Points

  • Global Context: India’s growth outpaces the global growth projection of 2.7% for 2025-26, with China’s growth slowing to 4%.
  • Economic Drivers: Growth is fueled by a thriving services sector, a revitalized manufacturing base, and government reforms such as tax streamlining and infrastructure modernization.
  • Private Sector Contribution: Rising private investments, robust corporate balance sheets, and favorable financing conditions are key contributors.
  • Global Impact: Since 2000, India, along with China and Brazil, has driven 60% of annual global growth, reflecting the transformative role of emerging markets.
  • Policy Highlights: Initiatives like PM GatiShakti, Startup India, and the Production Linked Incentive Scheme promote innovation, enhance financial inclusion, and strengthen economic resilience.