The World Bank has cut India’s GDP growth forecast for the financial year 2025-26 to 6.3%, down from 6.7% projected earlier. The update was released as part of the Bank’s latest South Asia Development Update.

The revision follows concerns over global economic uncertainty and its likely impact on investment and trade.

Comparative Forecasts

• International Monetary Fund (IMF): The IMF also reduced India's growth projection for FY26 to 6.2%, down from its earlier estimate of 6.5%. 
• Reserve Bank of India (RBI): The RBI's estimate remains at 6.5% growth for FY26, slightly higher than the projections by the World Bank and IMF. 

Regional Context

The World Bank's report indicates that growth projections have been broadly reduced across South Asia, with the region expected to grow at 5.8% in 2025. This reflects a broader trend of economic challenges in the region, influenced by global headwinds and domestic vulnerabilities.