World Bank sees India's GDP growth at 6.6% in FY25; here's a look at other key estimates

World Bank, in its biannual Global Economic Prospects (GEP) report released on June 11, said India would clock a gross domestic production (GDP) growth of 6.6% in fiscal year 2024-25 (FY25).

For the subsequent fiscal years of FY26 and FY27, the multilateral body sees India's GDP growing at 6.7% and 6.8%, respectively.

The estimated expansion rate, while being higher than the prevailing rate of growth in all major economies, would mark a climbdown as compared to the GDP growth of 8.2% recorded by India in FY24.

"This moderation is mainly due to a slowdown in investment from a high base. However, investment growth is still expected to be stronger than previously envisaged and remain robust over the forecast period, with strong public investment accompanied by private investment," World Bank stated in the GEP report.

"Private consumption growth is expected to benefit from a recovery of agricultural production and declining inflation. Government consumption is projected to grow only slowly, in line with the government’s aim of reducing current expenditure relative to GDP," it added.

What are the other major estimates for India's FY25 GDP growth?

The International Monetary Fund (IMF) sees Indian economy growing at 6.8% in FY25, whereas the Organization for Economic Cooperation and Development (OECD) has pegged the estimated growth rate at 6.6%.

Fitch Ratings, Asian Development Bank, and Standard Chartered Bank have projected the Indian GDP to grow at 7%.

Reserve Bank of India (RBI), the country's central bank, recently revised the estimate growth rate for FY25 as 7.2% from 7%.

Meanwhile, the country's largest commercial lender State Bank of India (SBI) sees the GDP growing at 8% in this fiscal year.

Fastest-growing economy

The World Bank report said that India will remains the world's fastest growing economy, outmatching the United States and China, despite the GDP growth moderating as compared to FY24.

"India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate," it stated.