India Outlook Unchanged as Global Growth Set to Slow: WB

Bank kept India's growth forecast at 6.3% for FY26, consistent with its April prediction

- Rhik Kundu

The global economy faces significant headwinds from escalating trade tensions and policy uncertainty, leading to a downgrade in prospects across most nations, the World Bank said on Tuesday, as it cut its global growth projection to 2.3% for the year.

In its "Global Economic Prospects June 2025" report, the bank kept India's growth forecast unchanged at 6.3% for FY26, consistent with its April prediction in the South Asia update.

This is 0.4 percentage points below January's projections, as the Bank anticipates weaker activity among key trading partners and rising global trade barriers to curb Indian exports.

It expects the Indian economy to grow slightly faster at 6.5% in FY27 and 6.7% in FY28.

Globally, the World Bank has revised its economic growth projections, now expecting a slowdown to 2.3% in 2025 (0.4 percentage points below the January forecast), 2.4% in 2026 (0.3 percentage points lower) and 2.6% in 2027.

It presents India's economic data on a fiscal year basis, in contrast with its calendar year reporting for other economies.