INDIA'S GROWTH PEGGED AT 6.6% IN FY25, RESILIENT DEMAND IS KEY

A midst further deceleration in global growth this year, lagged and ongoing effects of tight monetary policy, restrictive financial conditions and feeble global trade and investment, India is one of the key exceptions among emerging market and developing economies (EMDES) which are set to make limited progress catching up to advanced economy levels of per capita income and is expected to grow by 6.6 per cent in the current fiscal year 2024-25 after an estimated growth of 7.5 per cent, the World Bank's Global economics Prospect projected on Tuesday.

- NIVEDITA MUKHERJEE

Global growth is set to slow further this year, amid the lagged and ongoing effects of tight monetary policy, warns the report with downside risks to the outlook including an escalation of the recent conflict in the Middle East and associated commodity market disruptions, financial stress amid elevated debt and high borrowing costs, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers around the world face enormous challenges. At the global level, cooperation needs to be strengthened to provide debt relief, facilitate trade integration, tackle climate change, and alleviate food insecurity.