Kathmandu. The World Bank has increased India's GDP forecast for the financial year 2024 by 1.2 percent to 7.5 percent. The estimate has increased because the World Bank expects growth in the service and industrial sectors. While the gross domestic product estimate for fiscal year 2025 increased by 0.2 percent to 6.6 percent.

The slowdown in growth between fiscal years 2024 and 2025 reflects a decline in investment compared to the previous year. On the other hand, inflationary pressures are expected to ease in the coming months. This will make it easier for RBI, India's central bank, to cut interest rates. Government debt is also expected to decrease.

GDP growth is estimated to be 6.5 percent in the financial year 2025-2026. The World Bank estimates the gross domestic product (GDP) of the last financial year at 6.5 percent.

The World Bank's projection is influenced by growth in domestic demand, spending on public infrastructure and strong growth in private sector credit. However, the World Bank estimates that private consumption growth may remain low due to high food inflation and lack of demand.

RBI has been claiming that there will be a GDP growth of 7 percent in 2025.

Two months ago, after the monetary policy committee meeting, the Reserve Bank released the GDP and inflation estimates. At the same time, the real GDP growth estimate for fiscal year 2025 was increased from 6.70 percent to 7 percent. Retail inflation was estimated at 4.50 percent.