New Delhi, 7 October (IANS). India’s growth rate estimated by the World Bank on Tuesday has increased from 6.3 percent to FY 26 to 6.5 percent. This is due to strong domestic demand, recovery in rural demand and positive impact of tax reforms.
The World Bank further said in the report that India will remain the fastest growing big economy in the world this year.
The report estimated to be 4.8 percent of Bangladesh growth rate in FY 26, while the forecast for FY 26 has been reduced to 7.3 percent due to delay in hydropower construction for Bhutan, but it is expected to change when construction speed increases in FY 27.
At the same time, the growth rate in Maldives in FY 26 is expected to be slow to 3.9 percent, while in Nepal, due to recent disturbance and increased political and economic uncertainty, the growth rate in FY 26 is expected to be reduced to 2.1 percent.
In addition, the development of Sri Lanka, located in the south of India, has been increased to 3.5 percent in FY 26. The reason for this was a strong growth in tourism and service exports.
Johannes, South Asia Vice President of the World Bank, said, “South Asia has immense economic abilities and is still the fastest growing area in the world, but countries need to actively deal with the risks of development.”
RBI has increased the GDP growth estimate for the current financial year in October MPC from 6.5 percent to 6.8 percent. Also, the central governor said that in the first quarter, there is a boom seen in GDP. The GDP growth may be 7 percent in the second quarter of the current financial year, 6.4 percent in the third quarter and 6.2 percent in the fourth quarter.
Additionally, the central bank reduced the estimate of retail inflation to 2.6 percent for the financial year 26 (current financial year), which was August 3.1 percent.
For the second quarter of the current financial year, the estimate of inflation rate has been reduced from 2.1 percent to 1.8 percent, the third quarter estimate has been reduced from 3.1 percent to 1.8 percent and 4 percent for the fourth quarter.
-IANS
ABS/
