World Bank Raises India’s FY26 Growth Forecast to 6.5%
Why in the news
The World Bank raised its 2025-26 growth estimate for India, crediting firm domestic demand and GST rate cuts.
Key facts
| Item | Detail |
|---|---|
| FY26 forecast | 6.5% (earlier 6.3%) |
| FY27 outlook | 6.3% |
| Q1 FY26 growth | 7.8% |
| South Asia | 6.6% (2025) to 5.8% (2026) |
- Risks: tariffs of up to 50% on about 75% of goods exports; weak external demand.
- Supports: rural demand, farm recovery, GST simplification.
- Long term: AI adoption, trade liberalisation, productivity reforms.
Exam angle
- Report: South Asia Development Update.
- Revision: 6.3% to 6.5% for FY2025-26.