FPJ News Service mumbai

Highlighting the increasing uncertainty in the global economy, the World Bank on Wednesday cut India’s growth from 6.5% in FY24/25 to 6.3% in FY25/26. In India, growth is expected to slow from 6.5% in FY24/25 to 6.3% in FY25/26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty, the World Bank said in its twice-yearly regional outlook.

“Amid increasing uncertainty in the global economy, South Asia’s growth prospects have weakened, with projections downgraded in most countries in the region. Dimming growth prospects across the region amplify the challenge of creating jobs. Many in South Asia’s rapidly-growing workforce are likely to continue to seek opportunities abroad.

“Migrants from South Asian countries—mainly to countries outside the region—account for about 3% of its working-age population. About one-half of them work in the six-member Arab Gulf countries, are typically low-skilled, and on short-term contracts.

Another one-quarter work in advanced economies and tend to be highly skilled and longer-term migrants. While the challenges of emigration have been well documented, South Asian countries’ large diasporas also bring economic benefits to the home countries, both while workers are abroad and after they return home—through remittances, improved skills, investments, and trade ties,” the World Bank said.

“Low revenues are at the root of South Asia’s fiscal fragility and could threaten macroeconomic stability, especially in times of elevated uncertainty,” said Franziska Ohnsorge, World Bank Chief Economist for South Asia. “South Asian tax rates are relatively high, but collection is weak, leaving those who pay taxes with high burdens and governments with insufficient funds to improve basic services.”