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World Bank Cuts India’s FY26 GDP Growth Forecast to 6.3%.

Economy Business | Dated: 25 Apr 2025

On April 23, 2025, the Washington D.C. (United States of America, USA)-based World Bank (WB) released its “South Asia Development Update April 2025”, in which it lowered India’s Gross Domestic Product (GDP) growth forecast for the fiscal year 2025-26 (FY26) to 6.3%, marking a 0.4 percentage point cut from its previous estimate of 6.7%.

🎯 Key Highlights:

  • - This downward revision reflects slower private investment, reduced public capital expenditure, and rising global economic challenges and policy uncertainties.
  • - India’s GDP growth for FY2024-25 is also projected to slow to 6.3% from 6.5%, due to diminishing positive impacts of lower interest rates and easier business regulations in the face of weakened global economic conditions.

💡 Other Important Facts:

  • - The World Bank noted that India’s GDP growth declined from 9.2% in FY24 to an estimated 6.5% in FY25, representing the slowest pace in four years.
  • (i) For the South Asian region, the World Bank projects growth to decelerate to 5.8% in 2025, a 0.4 percentage point drop from its October 2024 estimates. However, for 2026, the region's growth is expected to recover slightly to 6.1%.
  • (ii) On April 22, 2025, the International Monetary Fund (IMF) also revised India’s GDP growth forecast for FY26 to 6.2%, down from its January 2025 projection of 6.5%.

📚 Test Your Knowledge:

Recently, to what percentage did the World Bank lower India’s GDP growth forecast for FY26?

Correct Answer: 6.3%

🚀 Quick Recap:

About World Bank (WB)

  • President: Ajay Banga
  • Headquarters: Washington D.C., United States of America (USA)