Tuesday, 7 October

Tuesday, 7 October2025

World Bank Upgrades India’s FY26 Growth Forecast to 6.5% Amid Tariff Concerns

World Bank Upgrades India’s FY26 Growth Forecast to 6.5% Amid Tariff Concerns
The World Bank has upgraded Indias fiscal year 202526 GDP growth forecast to 6.5% from 6.3%, citing strong domestic demand, rural rebound, and GST reforms. However, it cautions that heightened U.S. tariffs on Indian exports could slow growth in FY27, lowering the projection to 6.3%. Key risk factors include trade protectionism affecting labor-intensive sectors and external demand volatility.

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