The World Bank has lower its growth forecast for India to 6.3% within the present monetary yr 2025-26 from the 6.7% it had projected in January, citing dampened export and funding growth. This 0.4% level lower in India’s growth forecast is in keeping with an equal discount within the international growth forecast to 2.3%.
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The World Bank’s new forecast for India — included within the June 2025 replace of its Global Economic Prospects report launched on Tuesday (June 10, 2025) in Washington — is decrease than the 6.5% growth for 2025-26 that the Reserve Bank of India had predicted in its newest financial coverage announcement on June 6.
“India is projected to maintain the fastest growth rate among the world’s largest economies, at 6.3% in FY 2025-26,” the report stated. “Nevertheless, the forecast for growth in FY 2025-26 has been downgraded by 0.4 percentage point relative to January projections, with exports dampened by weaker activity in key trading partners and rising global trade barriers.”
“Investment growth is expected to slow, primarily reflecting a surge in global policy uncertainty,” it added.
However, the World Bank additionally predicted that growth is anticipated to rise once more within the subsequent two years (FY27 and FY28) to 6.6 % a yr, on common, partly supported by strong providers exercise that’s doubtless to allow a revival in export growth.
“Activity has moderated in India—South Asia’s largest economy—largely reflecting a slowdown in industrial production, offsetting steady services activity and the recovery in agricultural output,” the report added.
Regarding international growth, the World Bank famous that heightened commerce tensions and coverage uncertainty are anticipated to sluggish international growth this yr to its slowest tempo since 2008, not counting outright international recessions.
“This year alone, our forecasts indicate the upheaval will slice nearly half a percentage point off the global gross domestic product (GDP) growth rate that had been expected at the start of the year, cutting it to 2.3%,” World Bank Chief Economist Indermit Gill wrote in a weblog put up that accompanied the report.
“That’s the weakest performance in 17 years, outside of outright global recessions,” he added. “By 2027, global GDP growth is expected to average just 2.5% in the 2020s—the slowest pace of any decade since the 1960s.”
Published – June 11, 2025 11:48 am IST
