The World Bank on Tuesday placed India’s Economic Development (GDP) estimate for FY 2025-26 at a low of 3 percent. In April, the World Bank had reduced India’s development estimate for 2025–26 to 6.3 percent from the 6. 7 percent forecast of January. According to PTI news, however, the World Bank has also said that India will remain the fastest growing major global economy. At the same time, about the possibility of the world’s economy, it has been said that due to growing trade stress and policy uncertainty, the global growth rate is expected to decline this year, which will be the fastest since 2008. Global growth rate is estimated to be 2. 3 percent in 2025
What about India?
According to the news, about India, the report stated that the increase in FY 2024-25 (April 2024 to March 2025) slowed down, reflecting the recession in partially industrial production growth. However, the increase in construction and service activity remained stable and flexible demand in rural areas recovered from the state of severe drought. It states that India’s financial year 2025-26 is expected to maintain the fastest growth rate in the world’s largest economies at the rate of 6.3 percent. Nevertheless, the World Bank stated that the forecast of an increase in FY 2025-26 has been reduced by 0.4 percentage points as compared to January estimates, as exports have declined due to weak activity and increasing global trade obstacles among major trading partners.
FY2026-27 growth rate estimates
The report estimates India’s growth rate of 2026-27 to be 6.5 percent, which is 0. 2 percent less than the January estimate. The report further stated that the increase in SAR in 2025 is expected to be slow to 5.8 percent, as exports are affecting exports due to increasing trade obstacles, business confidence is decreasing and investment in the region is weakening. After this, the growth rate in 2026–27 is expected to reach 6. 2 percent per year, which will get rapid support in India and rapid support in other places, which roughly corresponds to the potential development estimates of the region.
Investment growth expected to slow down
The World Bank hopes that China will grow at the rate of 4.5 percent in 2025 and 4 percent next year. Last week, the Reserve Bank of India retained India’s GDP growth estimates at 6.5 percent for the current financial year, stating that the Indian economy presents a picture of strength, stability and opportunity in the background of global uncertainty. The World Bank further stated that investment growth is expected to slow down, which mainly reflects the global policy uncertainty. In FY 2026-27 and FY 2027-28, the increase is expected to reach an average of 6.6 percent per year, which is partially supported by strong service activity that contributes to an increase in exports.
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