World Bank: India fastest-growing economy with 6.3 % growth in FY26
Report
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The World Bank has retained its projection of a 6.3 % growth rate for the Indian economy in 2025-26. The World Bank, in its April 2025 report, had reduced India's growth forecast to 6.3 % from its January forecast of 6.7%.
The World Bank expect the Indian economy to grow by 6.5 % in 2026-27.
The World Bank, in its latest Global Economic Prospects report, issued in June 2025, predicted that India would remain the fastest-growing major economy in the world.
The World Bank report comes after the Reserve Bank of India (RBI) announced a 0.50 % cut in the policy repo rate to 5.50 %, which is expected to boost economic growth in the country.
RBI also forecasted a growth rate of 6.5 % for the Indian economy for the financial year 2025-26.
Trade Tension and Policy Uncertainty
According to the World Bank, trade tensions between the world’s major economies, caused by US President Donald Trump's threat of a tariff war with its trading countries and the resulting policy uncertainties, will lead to the slowest global economic growth rate since 2008.
- World Bank expects the world Economy to grow by 2.3 % in 2025, a reduction of 0.5 % as forecast in January 2025.
- Growth forecast has been cut in nearly 70 % of the world's economies.
- It expects the United States of America to grow by 1.6 % in 2025, compared to an earlier projection of 2.5 %.
- The Chinese economy is expected to grow by 4 % in 2025.
- According to the World Bank, if the trade disputes are resolved, global growth will rise by 0.2 % in 2025 and 2026.
- The World Bank has forecasted a World Growth rate of 2.4 % in 2026 and 2.6 % in 2027.
World Bank on the Indian Economy
According to the World Bank report, India will remain the fastest-growing economy in 2025.
The World Bank expects a strong growth in India’s service sector and exports.
Problem areas for the Indian economy
- The report expects the pace of investments in the Indian economy to slow down due to global uncertainty.
- Export- Indian exports will face weak demand in key export markets as these countries will likely register weak economic growth rates.
Reports Published by the World Bank
The World Bank is a multilateral developmental financial institution established along with the International Monetary Fund (IMF).
The World Bank releases a series of reports on the world economy.
Some of the important ones are :
- World Development Report
- Global Economic Prospect
- Global Financial Development Report
- Commodity Market Outlook
- International Debt Statistics
Headquarters: Washington, D.C, the United States of America
President: Ajay Banga
Members: 189 countries.
Established - July 1944
Also Read: RBI Cuts Policy Repo Rate by 50 Basis Points to 5.5 %
