The World Bank has projected a robust economic growth of 6.3-6.5% for India from 2023 to 2026, a rate that exceeds many G20 and emerging market economies, according to an announcement made on Thursday. This comes at a time when the global economy is experiencing a downturn, and China’s GDP growth is predicted to slow to 4.4% in 2024 due to a property crisis.
India’s economic progression is being powered by the government’s emphasis on public infrastructure investment, capital expenditure, and increased bank credit growth. A resurgence in consumption spending has also been observed, contributing substantially to the nation’s economic momentum.
In particular, record-breaking car sales during the festive season have played a significant role in this economic resurgence. Sports Utility Vehicles (SUVs) have been the standout performers in this sector. The rise in private final consumption expenditure (PFCE) by Indian households further underscores the strength of India’s consumer market.
The World Bank’s projection highlights India’s growing economic significance on the global stage, particularly in contrast with other major economies experiencing slower growth or even contraction. As economies worldwide grapple with various challenges, India’s focus on infrastructure investment and capital expenditure appears to be paying dividends, driving its growth trajectory above many of its peers.
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