India’s economic growth forecast was raised by the World Bank

India’s economic growth forecast was raised by the World Bank

¨     India’s economic growth forecast was raised by the World Bank.

¨    India’s growth forecast for the current financial year has been raised by the World Bank from 6.3 percent to 6.6 percent, reflecting improved economic outlook.

¨    Strong domestic demand and the impact of free trade agreements have been identified as the key factors driving this upward revision.

¨   India has been projected to remain the primary engine of growth in South Asia, highlighting its dominant regional role.

¨   Economic growth is estimated to have accelerated from 7.1 percent in FY 2025 to 7.6 percent in FY 2026 due to resilient demand and exports.

¨     Private consumption growth has been observed to be particularly strong, supported by low inflation and rationalisation of GST rates.

¨     Continued support to consumer demand is expected in the first half of FY 2027 due to GST rate reductions.

¨     Upward pressure on prices is anticipated due to elevated global energy prices, which may affect household disposable income.

¨   The regional outlook report has highlighted that tariff cuts and recent trade agreements, including those with the UK and EU, are supporting growth.

¨    The overall growth outlook of South Asia has been stated to remain strong despite global challenges, as noted by Vice President Johannes Zutt.

¨  The report underscores India’s central role in sustaining regional economic momentum through demand strength and policy support.