World Bank Keeps India’s FY26 Growth at 6.3%
Why in the news
The World Bank left its FY26 estimate for India untouched and expects debt relative to GDP to ease.
Key facts
- India stays the fastest-growing large economy.
- FY25 slowed on weaker industrial output; from FY27 growth should average 6.6% a year.
- Services and exports drive the medium term.
- Fiscal policy now uses a debt-to-GDP anchor instead of a deficit target.
| Agency | Latest FY26 view | Earlier view |
|---|---|---|
| ADB | 6.7% | 7.0% |
| Moody’s | 6.5% | 5.5-6.6% |
| Fitch | 6.4% | 6.5% |
| IMF | 6.2% | 6.5% |
| UBS | 6.0% | 6.3% |
| World Bank | 6.3% | 6.3% |
Global message
- Trade tensions, policy uncertainty and geopolitical risk are downside factors.
- Developing countries are advised to diversify trade, join regional pacts and seek strategic investment ties.
Exam angle
- Report: Global Economic Prospects (World Bank), June 2025.
- Among agencies tabulated, only the World Bank kept its FY26 figure unchanged.