World Bank raises India’s GDP forecast for FY26 to 6.5%

World Bank raises India’s GDP forecast for FY26 to 6.5%

The World Bank raised India’s gross domestic product (GDP) forecast for 2025–26 (FY26) to 6.5 per cent from 6.3 per cent projected in June.

It further revised downwards the estimate for 2026–27 (FY27) by 20 basis points to 6.3 per cent due to higher-than-expected tariffs on India’s exports to the United States.

In its South Asia Outlook, the World Bank said India is expected to remain the world’s fastest-growing major economy, supported by continued strength in consumption growth.

The report further noted that almost one-fifth of India’s goods exports went to the United States in 2024, equivalent to about 2 per cent of GDP.

The government’s reforms to the Goods and Services Tax (GST), reducing the number of tax brackets and simplifying compliance, are expected to support

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