The World Bank said that growth in India is firming up and is projected to accelerate to 7.3% in fiscal year 2019, and 7.5% in the next two years. It noted that the Indian economy had recovered from the temporary disruptions caused by demonetization and the introduction of the Goods and Services Tax. However, domestic risks and a less benign external environment will impact the macro-economic outlook, it cautioned.
On the production side, the turnaround in the second half was led by manufacturing (that grew at 8.8 percent versus 2.7 percent in the first half). Agricultural growth improved, and services growth held steady at 7.7 percent, the report said.
On the demand side, the pick-up in growth was reflected in a sharp acceleration in gross fixed capital formation to 11.7 percent in the second half, from 3.4 percent in the first. Consumption, growing at 7 percent in the second half, remained the major driver of growth, the report said.
Last updated: December 26th, 2025
