World Bank Raises India’s GDP Growth Estimate to 7.2%

On January 14, the World Bank raised its GDP growth estimate for India for the fiscal year 2025-26 to 7.2%. This is 0.9 percentage points higher than its June forecast. The upward revision takes into account strong domestic demand and the impact of implemented tax reforms.

However, the global institution expects India’s growth rate to slow in 2026-27, projecting a GDP growth of 6.5% for the same period. This projection assumes that the 50% tariff imposed by the United States on Indian exports will remain in effect through FY 2026-27.

The World Bank’s 'Global Economic Prospects' report noted that despite the slowdown, India will remain the fastest-growing major economy. In June, the World Bank had forecasted India’s growth rate for the current fiscal year at 6.3%.

Recently, the Ministry of Statistics and Programme Implementation released early estimates suggesting a GDP growth of 7.4% for FY 2025-26. Since then, global institutions and rating agencies have been revising India’s GDP growth projections accordingly.