World Bank Raises India's FY26 Growth Forecast to 7.2% Amid Strong Domestic Demand

• World Bank revises India's FY26 growth projection to 7.2%, citing resilient domestic demand.
• For FY2026-27, the agency projects a growth rate of 6.5 percent.
• Strong domestic demand is expected to subdue the impact of higher US tariffs on India's goods exports.
• High US tariffs are anticipated to dampen India's goods exports, despite robust services export growth.
• India is expected to reduce poverty rates significantly due to continued rapid growth.

Why It Matters: World Bank raises India's FY26 growth forecast to 7.2% driven by strong domestic demand.