The World Bank has raised India’s growth forecast for FY26 to 6.5 per cent from its earlier projection of 6.3 per cent in June. According to the World Bank’s latest South Asia Development Update released on October 7, India is expected to remain the world’s fastest-growing major economy, driven by strong consumption, improved farm output, and rising rural wages.

However, it cautioned that India’s growth next year could be affected by the impact of US tariffs on its exports. The World Bank has trimmed its forecast for India’s growth in the next fiscal year to 6.3 per cent from 6.5 per cent. US President Donald Trump has imposed a 50 per cent tariff (including 25 per cent additional tariff for buying Russian oil) on most exports from India, among the highest of any US trading partner.

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