The World Bank has reaffirmed its strong confidence in India’s economic growth and encouraged global investors to look at India as a prime destination for investment. Speaking at the Advantage Assam 2.0 Business Summit, Auguste Tano Kouame, the World Bank’s Country Director for India, emphasized that minor fluctuations in growth do not change the lender’s positive outlook on the country’s economic future.
India Remains a “Shining Light” in the Global Economy
Kouame dismissed concerns over recent economic data, stating that a one-percentage-point variation in growth does not impact India’s long-term prospects. He assured investors that India remains a key player in the global economy. “We are not worried about India’s growth at the moment. We are very bullish about India and will remain bullish,” he said.
Calling India a “shining light in the world,” Kouame urged businesses to take advantage of the country’s strong economic performance. “If you are looking to invest, then come and invest here. India’s growth makes it the place to invest,” he added.
India Outpaces Global Growth
Despite a slight decline in growth from the previous year, India continues to be the fastest-growing large economy. The Reserve Bank of India (RBI) projected a 7.2% growth rate for the current fiscal year, down from 8.2% in 2023-24. However, this remains significantly higher than global projections.
According to the January 2025 edition of the World Bank’s Global Economic Prospects (GEP) report, India’s economy is expected to grow steadily at 6.7% in both FY26 and FY27. This growth rate far surpasses the expected global average of 2.7% for 2025-26, highlighting India’s resilience and increasing influence on the world economy.
Government Initiatives Driving Growth
The GEP report attributes India’s strong momentum to a thriving services sector and a revitalized manufacturing base. It credits government initiatives, including infrastructure modernization and tax reforms, for boosting domestic growth and strengthening India’s position in the global market.
In contrast, China’s economic growth is projected to slow to 4% next year, further cementing India’s role as a leader in the region.
IMF Backs India’s Strong Economic Outlook
The International Monetary Fund (IMF) has also reinforced India’s stable growth trajectory. According to the latest World Economic Outlook (WEO) update, the IMF expects India to maintain a 6.5% growth rate in both 2025 and 2026. This aligns with its earlier projections from October and reflects the country’s strong economic fundamentals despite global uncertainties.
A Promising Future for Investors
With its steady growth, business-friendly policies, and expanding industries, India presents a compelling opportunity for global investors. As the World Bank and IMF continue to highlight India’s economic strength, the country is set to play an even greater role in shaping the future of the global economy.
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