World Bank raises India’s 2025/26 fiscal year growth forecast to 6.5%

The World Bank raised its economic growth forecast for India for the 2025/26 fiscal year from 6.3% in June to 6.5% on Tuesday.

However, the institution lowered its forecast for the 2026/27 fiscal year by 0.2 percentage points to 6.3%, citing higher-than-expected tariffs imposed by the United States. “Supported by sustained strong consumption growth, India is expected to remain the world’s fastest-growing major economy.

Domestic conditions, particularly agricultural output and rural wage growth, are better than expected,” the institution stated in its South Asia Development Update (October 2025).

Last month, the Indian government said that GDP growth for the 2025-26 fiscal year could exceed the projected range of 6.3%-6.8%, due to a surge in consumption following recent cuts to Goods and Services Tax rates and strong first-quarter GDP performance.

Recent data showed that India’s second-quarter GDP grew by 7.8%, the fastest pace in five quarters.