IMF Growth Projection for India
- Maintain growth at 6.5% for FY26 and FY27.
- Causes of sluggish growth
- Stunned deceleration in industrial activity.
- Shocking 5.4% growth in September quarter.
World Bank‘s Growth Projection
- Stepped-up growth prospect
- The growth for India would be at 6.7% during FY26 and FY27.
- Causes of growth
- Continued services sector growth along with strengthening of manufacturing activity.
NSO‘s Estimate of Growth in FY25:
- Lower FY25 projection
- 6.4% growth, a four-year low.
- Lower than RBI’s projection of 6.6% growth for FY25.
Global Growth Outlook by IMF:
- Stable growth in the world
- 2025 and 2026, 3.3%.
Risks and Challenges
- Protectionism and geopolitical tensions
- The risks and vulnerabilities associated with trade and investment.
- Policy reforms
- Supplies of labor improve, misallocations decline, competition increases, and innovation is supported.
Source: Business Standard
