New York: The World Bank on Wednesday lowered India’s growth forecast for the current fiscal. The international agency lowered India’s GDP growth forecast by 4 percentage points to 6.3 per cent. In its previous estimate, the World Bank had projected India’s growth at 6.7 per cent for the fiscal year 2025-26.
‘In India, growth is expected to slow from 6.5 per cent in FY24/25 to 6.3 per cent as in FY25/26 as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty,’ said the World Bank in its twice-yearly South Asia Development Update, Taxing Times.
‘Private consumption is expected to benefit from tax cuts, and the improving implementation of public investment plans should boost government investment, but export demand will be constrained by shifts in trade policy and slowing global growth,’ the report said.
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On Tuesday, the International Monetary Fund (IMF) also lowered India’s GDP forecast for the current fiscal to 6.2 per cent from its January estimates of 6.5 per cent.
The Washington-headquartered multilateral agency has projected regional growth to slow to 5.8 per cent in 2025, 0.4 percentage points below October projections before ticking up to 6.1 per cent in 2026. In Bangladesh, the report said the growth is expected to slow in FY24/25 to 3.3 per cent.
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