Mumbai: The World Bank has maintained India’s economic growth rate target of 6.70 percent in the financial year 2026 and has also maintained the forecast that India will be the fastest growing economy in the next two years.
A report prepared by the World Bank said that government initiatives to improve the business environment through tax reforms and expansion of logistics infrastructure have resulted in India’s services sector continuing to expand and manufacturing activity strengthening. are supposed to.
The growth rate of the global economy is expected to be 2.70 percent in both the years 2025 and 2026. This rate was also seen in 2024. Inflation and interest rates are gradually decreasing.
It is also expected that the economic growth rate in developing countries will remain at four percent in the next two years. World Bank chief economist Indermit Gill said in the report that compared to the last 25 years, the next 25 years will be more difficult for developing countries.
Most of the factors supporting the growth of developing countries have now loosened and challenges such as high debt burdens, weak investment and the costs of climate change are emerging.
Developing countries need new standards for development that emphasize domestic reforms that promote private investment, strengthen trade ties, and encourage greater use of capital, talent, and energy.
The report also expects India’s private consumption to pick up on the back of a strong labor market, credit growth and low inflation.
