WB: India, not China, to Drive Economic Growth in Asia

Indian economy is set to grow at 6.6 percent in 2024-2025 fiscal year

Martin Raiser World Bank

According to a recent World Bank (WB) report titled “South Asia Development Report” (download PDF file), South Asia will become “the world’s fastest-growing economic territory.”

The South Asian economy is expected to grow by 6% in 2024 and again by 6.1% in 2025, led by India, whose economic growth is expected to rise to 7.5% in 2023-24 fiscal year (ending March 2024) before falling to 6.6% in the subsequent similar period.

As for China, the Beijing government said it will do everything it can to guarantee growth of “around 5 percent” in the world’s second-largest economy in 2024.

“South Asia’s growth prospects remain bright in the short term, but fragile financial conditions and rising potential climate shocks present so-called ‘dark clouds’ on the horizon,” said World Bank Vice President for South Asia Martin Raiser. “To make economic growth more sustainable, countries must stimulate private investment inflows and tackle unemployment,” Raiser added.