World Bank: US Tariffs May Affect India's GDP, But Strong Domestic Demand to Sustain Growth

• World Bank estimates US tariffs could impact India's GDP growth in FY2025/26, but impact will not be significant.
• India's growth projected at 7.2% for FY2025/26, driven by strong domestic demand and consumption.
• Growth for FY2026/27 estimated at 6.5%, with domestic demand largely mitigating tariff effects.
• FY2027/28 growth expected to improve to 6.6%, supported by investment recovery, exports, and services.
• IMF and ADB also maintain positive outlooks for India's economy, citing strong domestic demand and investment.

Why It Matters: Despite potential US tariff impact, India's economy is set for strong growth, primarily driven by robust domestic demand.