India’s Growth Story Moderates: World Bank Projects 6.3% for FY26

The World Bank has revised its growth forecast for India in the fiscal year 2025-26 (FY26) downwards to 6.3%. This adjustment comes amidst concerns about weakening export performance and a slowdown in investment activity.

Still a Bright Spot, But Challenges Emerge

Despite the slight downward revision, the report highlights that India is expected to remain the fastest-growing economy among the world’s major players. This positive outlook is tempered, however, by the challenges presented by the global economic landscape.

Impact on Exports and Investments

The World Bank’s report points to subdued export demand and moderating investment levels as key factors contributing to the revised growth projection. These factors warrant careful consideration as India navigates the evolving global economic situation.