The World Bank has pegged India’s economic growth projection at 6.3 per cent for the Financial Year 2025-26, stating that the country is projected to maintain the fastest growth rate among the world’s largest economies.

According to the World Bank’s latest Global Economic Prospects report, India’s growth moderated in FY 2024-25 due to deceleration in industrial output growth. However, growth in construction and services activity remained steady, and agricultural output recovered from severe drought conditions, supported by resilient demand in rural areas.

The report stated that in FY 2026-27 and FY 2027-28, growth is expected to recover to 6.6 per cent a year, on average. This would be partly supported by robust services activity, contributing to a pickup in exports.

The report highlighted that heightened trade tensions and policy uncertainty are expected to drive global growth down this year to its slowest pace since 2008, outside of outright global recessions. The global growth has been projected to slow to 2.3 per cent in 2025, nearly half a percentage point lower than the rate that had been expected at the start of the year.