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

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

However, the institution lowered its projection for the 2026/27 fiscal year by 0.2 percentage points to 6.3%, citing higher-than-expected U.S. tariffs. “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 the South Asia Development Update (October 2025).

Last month, the Indian government indicated 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 reductions in goods and services tax rates and strong first-quarter GDP performance.

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