India will remain the fastest-growing major economy, in terms of aggregate and per capita gross domestic product (GDP), according to a recently released World Bank report. The country maintained its FY24 growth prediction of 6.3 percent.

In its Global Prospects report, the bank stated, “Greater than expected resilience in private consumption and investment, and a robust services sector in India, are supporting growth in 2023. Growth is projected to pick up slightly through FY26 as inflation moves back toward the midpoint of the tolerance range and reforms payoff."

The World Bank raised its FY24 GDP prediction for India by 30 basis points to 6.3 percent in its April India Development Update. According to the World Bank, as a result of increasing prices and rising borrowing rates that restrained private spending, India's growth in the first quarter of 2023 remained below that of the decade before the pandemic.

"Unexpected resilience in private consumption and investment, and robust growth in the services sector in India, underlie an upward revision to growth in 2023," said the report.