World Bank Lowers India’s FY25 Growth Forecast to 6.3%
Why in the news
The World Bank lowered India’s FY2025 growth projection, citing weak global conditions and domestic policy uncertainty. The IMF also trimmed its forecast.
Key facts
| Forecast | Earlier | Now |
|---|---|---|
| World Bank FY25 | 6.7% | 6.3% |
| World Bank FY26 | – | 6.3% |
| IMF FY25 | 6.5% | 6.2% |
FY24 growth was estimated at 6.5%.
Reasons
- Tepid private investment despite easing and reforms.
- Public capex shortfall.
- Global weakness and slow trade.
- Policy uncertainty.
Way forward
Faster structural reforms, private investment push and timely infrastructure delivery.
Exam angle
- Cut size: 40 basis points.