India is a fast growing economy. The world has now accepted that India's economy is growing rapidly across the world. In fact, the World Bank acknowledged India's potential and said that India will remain the world's fastest growing major economy for the next two years. In the Global Economic Prospects report, the World Bank has estimated India's growth at 6.7 percent for the financial year 2025-26.
The report says that continuous expansion in the service sector and strength in manufacturing is expected, which will benefit India's economy. Not only this, the report said that the government's logistics infrastructure improvement and tax reforms initiatives will promote growth in these sectors. The World Bank has projected the global economy to grow at a rate of 2.7 percent in 2025 and 2026, which is the same as last year.
The World Bank has estimated a stable growth of 4 percent in the next two years in developing economies. However, in the meantime, countries will also have to face many challenges. According to Indermit Gill, Chief Economist of the World Bank, the next 25 years will be more challenging for developing countries than the last 25 years. Developing countries will face challenges like high debt, weak investment and geopolitical tensions.
A slowdown is expected in China due to lack of consumer demand and weak production. This reflects the uneven and uncertain nature of the global recovery. According to the report, the growth outlook for China also remains weak and while India's economy will grow rapidly in the coming years, China's economy is expected to grow slowly. Apart from this, according to the report, South Asia continues to remain ahead in terms of growth.
