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World Bank Retains India’s GDP Growth Forecast at 6.3% for FY26 and 6.5% for FY27.

Economy Business | Dated: 15 Jun 2025

In June 2025, the World Bank (WB) released its Global Economic Prospects (GEP) report, projecting India’s GDP growth at 6.3% in FY26, 6.5% in FY27, and 6.7% in FY28. The forecasts mark a downward revision of 40 basis points (bps) for FY26 and 20 bps for FY27 compared to the previous estimates made in January 2025.

🎯 Key Highlights:

  • - The report highlights a weakening global economic outlook, with the global GDP growth forecast revised downward to 2.3% for 2025 (reduced by 0.4%) and 2.4% for 2026 (reduced by 0.3%).
  • - These figures represent the slowest pace of global growth since 2008, excluding recession years.

💡 Other Important Facts:

  • (i) According to the World Bank, the downturn is largely due to heightened trade tensions, policy uncertainty, and economic fragmentation.
  • (ii) These factors have led to growth downgrades in nearly 70% of economies worldwide, regardless of region or income group.
  • (iii) The report also projects global inflation to average 2.9% in both 2025 and 2026, before easing to 2.5% in 2027, indicating persistent inflationary pressures despite moderating growth expectations.

📚 Test Your Knowledge:

The World Bank’s June 2025 Global Economic Prospects revised India’s FY27 growth forecast to what figure?

Correct Answer: 6.5%

🚀 Quick Recap:

About World Bank

  • Chief Financial Officer: Anshula Kant
  • Headquarters: Washington, D.C., United States