World Bank Boosts India's GDP Growth Forecast to 7.2% for 2025-26

• The World Bank has revised India's GDP growth forecast for fiscal year 2025-26 to 7.2%, a significant increase of 0.9 percentage points from its June estimate.
• Key drivers for this upward revision include strong domestic demand, effective tax reforms, and a surge in private consumption.
• Improved household incomes, particularly in rural areas, have further bolstered consumption, maintaining India's growth momentum despite global uncertainties.
• The World Bank projects India's growth to potentially slow to 6.5% in 2026-27 due to US import duties, but expects a limited overall impact.
• India is set to remain the fastest-growing major economy globally, with growth rebounding to 6.6% in 2027-28, driven by services, exports, and investment.

Why It Matters: India's economy shows robust growth potential, with the World Bank raising its 2025-26 GDP forecast to 7.2%.