World Bank lowers India's FY26 growth forecast to 6.3%

World Bank lowers India's growth forecast to 6.3% amid global economic weakness and policy uncertainty, impacting South Asia's growth.

The World Bank on Wednesday (April 23, 2025) lowered India’s growth forecast for the current fiscal by 4 percentage points to 6.3% amid global economic weakness and policy uncertainty.

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In its previous estimate, the World Bank had projected India’s growth at 6.7% for the fiscal year 2025-26.

In India, growth in FY24/25 disappointed because of slower growth in private investment and public capital expenditures that did not meet government targets, the World Bank said in its twice-yearly regional outlook.

“In India, growth is expected to slow from 6.5% in FY24/25 to 6.3% as in FY25/26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty,” said its South Asia Development Update, Taxing Times.

On Tuesday (April 22), the International Monetary Fund (IMF) also lowered India’s GDP forecast for the current fiscal to 6.2% from its January estimates of 6.5%.

The World Bank report said the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty.