World Bank (WB) projects India to lead South Asia with 7.6% growth in FY26

Key facts

• World Bank (WB) forecasts India’s GDP growth at 7.6% in FY26 and 6.6% in FY27.
• WB had earlier pegged India’s growth at 6.3% for FY25 in its October 2025 update.
• South Asia’s regional growth is projected to slow to 6.3% in 2026 from 7.0% in 2025.
• Regional growth is expected to recover to 6.9% in 2027, keeping South Asia the fastest-growing among emerging market and developing economies.
• Bangladesh is projected to expand 3.9% in FY26 as it recovers from political unrest.
• Bhutan is expected to grow 7.1% in FY26, driven by hydropower projects.
• Sri Lanka’s growth is seen slowing to 3.6% in 2026 from 5.0% in 2025 amid rising energy costs.
• Maldives is forecast to decelerate sharply to 0.7% in FY26 due to tourism, fuel prices, and financing pressures.
• Nepal is expected to grow 2.3% in FY26, with a recovery anticipated as domestic disruptions ease.
• Pakistan and Afghanistan will be covered separately in WB’s Middle East and North Africa update.