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World Bank Raises India’s FY26 GDP Growth Forecast to 7.1%.

Economy & Business | Dated: 09 Dec 2025

The World Bank, in its latest "India Development Update", has raised India’s GDP growth forecast for the Financial Year 2025-26 (FY26) to 7.1%, up from its previous estimate of 6.8%. The report cites strong domestic consumption, robust infrastructure investment, and a revival in the manufacturing sector as key drivers.

🎯 Key Highlights:

  • The World Bank expects India's fiscal deficit to narrow to 4.8% of GDP in FY26 due to improved tax buoyancy.
  • It highlights that India will remain the fastest-growing major economy globally.
  • Inflation is projected to stabilize within the RBI's tolerance band of 4% (+/- 2%).

💡 Other Important Facts:

  • Forecast: 7.1% (FY26).
  • Report: India Development Update.
  • Outlook: Fastest growing major economy.

📚 Test Your Knowledge:

What is the revised GDP growth forecast for India for FY26 as per the World Bank's latest update?

Correct Answer: 7.1%

🚀 Quick Recap:

About World Bank

  • HQ – Washington, D.C.
  • President – Ajay Banga