This adjustment comes despite a slowdown to 6.7% in the
April-June quarter, attributed to reduced government spending during national
elections.
Agricultural Recovery & Rural Demand: The upward revision is largely driven by a
recovery in the agricultural sector and an increase in rural demand.
Government Spending on Infrastructure: Increased investment in infrastructure by the
government has also bolstered growth prospects.
Despite the positive outlook, the
World Bank highlights the challenge of job creation, noting that the urban unemployment rate remains high at
an average of 17%.
The World Bank projects that India’s medium-term economic growth will
average 6.7% over the next two fiscal years, with a gradual increase in private
investment expected to aid in consumption recovery.