World Bank retains India FY26 GDP growth forecast at 6.3% and 6.5% in FY 27

Current Context: The World Bank has retained India’s GDP growth forecast at 6.3% for FY26 and 6.5% for FY27, as per its Global Economic Prospects (GEP) report released on June 10, 2025.

The report highlights India’s economic resilience despite global trade barriers and subdued exports, reaffirming its position as the fastest-growing major economy.

Key Highlights

India’s GDP forecast for FY26 was downgraded from 6.7% to 6.3%, citing weaker exports and investment growth.
Global GDP growth is projected at 2.3% for 2025, marking the slowest pace in 17 years, excluding recessions.
India’s construction and services sectors remain strong, supported by rural consumption and agricultural recovery.
RBI’s FY26 GDP projection remains at 6.5%, highlighting macroeconomic resilience.

Trade barriers and policy uncertainty pose risks, but India’s economic fundamentals remain robust.

Question:

Q.1 According to the World Bank’s Global Economic Prospects (GEP) report released on June 10, 2025, what is India’s GDP growth forecast for FY26?
a) 6.7%
b) 6.5%
c) 6.3%
d) 6.1%

Answer: c) The GEP report retained India’s GDP forecast for FY26 at 6.3%, a downgrade from the earlier estimate of 6.7%, citing weaker exports and investment growth.