World Bank (WB) raises India’s FY26 growth forecast to 7.2%

Key facts

• The World Bank (WB) raised India’s growth forecast for FY26 to 7.2%, an increase from the 6.3% projected in June 2025.
• India’s growth is estimated to moderate to 6.5% in FY27, assuming 50% tariffs by the United States remain in place throughout the forecast horizon.
• The WB projects India’s growth to edge up to 6.6% in FY28, supported by resilient services activity, a recovery in exports, and a pickup in investment.
• The National Statistical Office (NSO) estimated India’s gross domestic product (GDP) growth for FY26 at 7.4% on January 7.
• Growth for South Asia is expected to rise to 7.1% in 2025 and slow to 6.2% in 2026, reflecting the impact of higher US tariffs on India’s exports.
• Global economic growth is expected to moderate to 2.6% in 2026 from 2.7% in 2025.
• The United States economy is estimated to rise to 2.2% in 2026, while China’s economic growth is projected to slow to 4.4% from 4.9%.