India’s economy achieved an impressive growth rate of 7.8% in the first quarter of the current financial year, driven by solid performances in the agriculture and financial sectors. The agriculture sector recorded a growth rate of 3.5%, while financial, real estate, and professional services saw growth of 12.2%. However, manufacturing, mining, electricity, gas, water supply, and construction experienced a decline in growth.
Despite the positive outlook, the World Bank warns that rising borrowing costs, inflationary pressures, and the fluctuating monsoon may hamper India’s growth in the upcoming quarters. The World Bank predicts a moderate GDP growth rate of 6.3% for the current financial year, while the Indian federal bank expects a growth rate of 6.5%.