India’s economy is doing well! The World Bank has increased its forecast for India’s economic growth in the current financial year, raising it to 7% from 6.6%. According to government figures released last week, the Indian economy grew by 6.7% in the first quarter of fiscal year 2024-25. The slowdown was attributed to reduced government expenditure during the national elections.
In spite of this, India remained the major economy with the fastest growth rate in the world, outpacing China’s 4.7% growth rate in the corresponding period.
Economic analysts believe that the slowdown will be short since declining inflation rates and heightened government spending are expected to boost GDP in the following months.
In comparison to the same period the previous year, the Gross Value Added (GVA), which economists believe to be a more accurate indicator of economic development, increased by 6.8% in the April–June quarter. This is a boost from the 6.3% GVA growth achieved in the previous quarter.