India's economic growth rate stands out as one of the brightest in the global economy, according to World Bank President Ajay Banga. Speaking on Thursday ahead of next week's annual meeting of the World Bank and the International Monetary Fund, Banga highlighted India's resilience, noting that much of the country's growth is fueled by its strong domestic market.
"There is no doubt that India's growth rate is among the shiniest parts of the world economy," Banga said. "Growing at six to seven percent in this environment shows that India has taken significant steps to reach this point."
Banga said that the reliance on domestic consumption is a healthy indicator for India's economy. However, he pointed out areas for improvement, such as the quality of air and water, which Prime Minister Narendra Modi has also prioritised. "We are actively working with India on these issues, and I expect we will see more tangible results in the coming months through various projects," Banga added.
World Bank Managing Director for Operations, Anna Bjerde, echoed Banga's sentiments, stressing that the organisation is assisting India in transforming its growth into sustainable development and job creation. Bjerde also highlighted the importance of increasing female workforce participation, which remains a key area for India's economic potential.
The World Bank is also partnering with India on urban development, aiming to enhance city liveability, with a focus on improving air quality, water supply, and urban planning.
Meanwhile, according to a report released by S&P Global Ratings on Thursday, India is projected to become the world’s third-largest economy by 2030, but its rapidly growing population presents significant challenges in providing basic services and meeting increasing investment needs. The report underscores India's ambitious economic objectives, including its goal to expand the economy to $30 trillion by 2047, up from its current $3.6 trillion. Presently, India ranks as the fifth-largest economy in the world.