World Bank retains India’s FY26 growth at 6.3% amid global uncertainty, trade tensions
The World Bank has maintained its forecast for India’s economic growth at 6.3% for FY2025-26, citing heightened global uncertainty and rising tariffs as major headwinds affecting most economies.
The latest estimate comes even as global trade tensions escalate and policy unpredictability weighs heavily on economic prospects.
The multilateral lender had earlier in April trimmed India’s growth outlook to 6.3% from its January estimate of 6.7%.
The revision was reiterated in its Global Economic Prospects report released Tuesday.
Globally, the World Bank now expects GDP growth to slow to 2.3% this year—down from its earlier projection of 2.7%—marking the weakest pace since 2008 outside of full-fledged recessions.
The bank warned that unless corrective action is taken swiftly, the slowdown could significantly erode living standards.
While India’s economy clocked a robust 7.4% growth in the March quarter, it wasn’t enough to lift the full-year performance beyond 6.5%—its slowest pace since the pandemic.
The Reserve Bank of India, which held its GDP forecast steady at 6.5% for FY26 last week, flagged uncertainty linked to evolving global trade dynamics, including protectionist moves such as U.S. President Donald Trump’s recent tariff actions.
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