World Bank: India's Economy to Grow at 7.2% in FY26, Driven by Domestic Demand

• World Bank's January report projects India's economy to grow at 7.2% in FY26, an upgrade from previous estimates.
• Strong domestic demand, improved rural incomes, and tax reforms are key drivers offsetting export pressures.
• Growth is expected to be 6.6% in FY27, supported by the service sector, export recovery, and investment.
• India's projected 7% growth stands out amidst a global slowdown, with global growth estimated at 2.6% in 2026.
• The service sector and investment, including digital services and infrastructure, are crucial for India's positive medium-term outlook.

Why It Matters: India's economy is set for robust 7.2% growth in FY26, primarily fueled by strong domestic demand.