Source- This post on World Bank Raises India’s Economic Growth Forecast to 7% for FY 2024-25 has been created based on the article “World Bank hikes India’s economic growth projection to 7% for FY 2024-25” published in “The Hindu” on 4th September 2024.
Why in News?
The World Bank has revised its growth projection for India’s economy, predicting a 7% expansion for the fiscal year 2024-25. This new estimate is an increase from its earlier forecast of 6.6%, reflecting India’s robust economic performance despite global challenges.
Highlights of the report
The report highlights several factors contributing to India’s growth:
1. Public Infrastructure Investments: Significant investments in public infrastructure have provided a substantial boost to economic activity.
2. Household Investment in Real Estate: An upswing in household investments in the real estate sector has further supported growth.
3. Manufacturing and Services Sector Performance: The manufacturing sector grew impressively by 9.9%, while resilient services activity offset underperformance in the agricultural sector.
4. Improving Employment Trends: Urban unemployment rates have gradually improved since the pandemic, particularly for female workers. Female urban unemployment fell to 8.5% in early FY 2024-25, although urban youth unemployment remains high at 17%.
Strategic Recommendations for Trade Growth
To achieve ambitious $1 trillion merchandise export target, the report recommends a three-pronged strategy:
i) Reducing Trade Costs: Lowering the costs associated with trade to enhance competitiveness.
ii) Lowering Trade Barriers: Removing or reducing trade barriers to facilitate smoother international trade.
iii) Deepening Trade Integration: Strengthening India’s integration into global trade networks to maximize its trade potential.
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