World Bank (WB) projects India GDP growth at 7.6 per cent for FY26

Key facts

• The World Bank (WB) estimated India's Gross Domestic Product (GDP) growth to have accelerated to 7.6 per cent in Financial Year 2025-26 (FY26) from 7.1 per cent in FY25.
• The WB projected India's growth to slow to 6.6 per cent in FY27, an upward revision from the 6.5 per cent forecast made in the January Global Economic Prospects report.
• India remains the fastest-growing large economy in the world in FY26, supported by strong domestic demand and export resilience.
• The WB identified high foreign exchange (Forex) reserves, fiscal space, and low inflation as strong policy buffers to weather global energy shocks.
• The growth estimates for FY27 are based on an assumed oil price range of USD 90-100 per barrel.
• Moody's Investors Service (Moody's) lowered its India GDP growth estimate for FY27 to 6 per cent due to the West Asia conflict.
• Domestic consumption was bolstered by income tax cuts and Goods and Services Tax (GST) rate reductions implemented in the previous year.
• The WB noted that India's growth momentum is supported by positive policies including the European Union (EU) Free Trade Agreement (FTA) and new labour laws.