World Bank Lowers India's Growth for FY26 to 6.3%

THE WORLD BANK has cut India's growth projection by 40 basis points (bps) to 6.3% for 2025-26, as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty.

- FE BUREAU

On Tuesday, the International Monetary Fund (IMF) had cut India's growth projection by 30 bps to 6.2% for FY26, citing higher trade tensions and global uncertainty.

World Bank also cut India's growth projection by 50 bps for FY25 to 6.5% for FY25 because of slower growth in private investment and public capital expenditures that did not meet government targets. "GDP growth is expected to slow from 6.5% in FY24/25 to 6.3% in FY25/26," the multilateral agency said in its South Asia Development update.

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