The World Bank on Tuesday raised the growth forecast for the Indian economy to 7 per cent for the current fiscal year on the back of recovery in agri sector and rural demand.

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World Bank had in June projected India to grow at 6.6 per cent for FY24.

According to the World Bank Report released on Tuesday, India's growth continues to be strong despite a challenging global environment.

Improvement in monsoon and private consumption have led to revising the India gross domestic product (GDP) forecast, said World Bank senior Economist Ran Li.

The growth rate of India, which accounts for the bulk of the South Asia region, is expected to remain strong at 7 per cent in 2024-25, the World Bank said in the India Development Update.

Recovery in agriculture will partially offset a marginal moderation in industry, it said, adding that services will remain robust.

Rural private consumption will recover, thanks to the expected recovery in agriculture, the World Bank said.