FX.co ★ World Bank Cuts India's Growth Forecast to 6.3%

The World Bank has revised its economic growth projection for India, reflecting heightened global economic uncertainties. The financial institution has adjusted its growth estimate for India down by 0.4 percentage points to 6.3% for the fiscal year 2025–2026, which commenced on April 1. This represents a reduction from its earlier forecast of 6.7%. According to the "Taxing Times" report from the April 2025 South Asia Development Update, while monetary easing and regulatory streamlining were anticipated to favorably impact private investment, these gains are likely to be counterbalanced by global economic frailty and policy unpredictability. Additionally, the International Monetary Fund (IMF) has also lowered its GDP growth forecast for India to 6.2%, a decrease from its January estimate of 6.5%. Both revisions from the World Bank and IMF fall slightly below the Reserve Bank of India's growth projection of 6.5%. In the fiscal year 2024–2025, India's economy achieved a 6.5% expansion.