World Bank released the Global Economic Prospects report

World Bank released the Global Economic Prospects report

¨     World Bank projected India’s Gross Domestic Product (GDP) growth at 6.6% for FY 2026–27 in its Global Economic Prospects report released on 11 June 2026.

¨     The projection follows an estimated 7.7% GDP growth in FY 2025–26.

¨     India is expected to remain the fastest-growing major economy during the forecast period.

¨     The World Bank projected India’s growth at 7.2% for FY 2027–28 and 7.0% for FY 2028–29.

¨     According to the report, the moderation in FY 2026–27 growth is linked to higher energy prices and rising input costs, which could affect private demand.

¨     Economic activity in India remained strong in early 2026, supported by robust domestic demand.

¨     Rural consumption and the recovery of urban demand were identified as key drivers of economic growth.

¨     Private consumption is a major component of India’s GDP and reflects household spending on goods and services.

¨     The World Bank lowered its global growth forecast for 2026 to 2.5%.

¨     It described this as the weakest global economic expansion since the COVID-19 pandemic.