World Bank's Growth Upgrade: What it Means for India's Economy and Policy

• The World Bank upgraded its 2026 global growth forecast to 2.6%, signaling a stable but narrower growth band post-pandemic.
• Global economy absorbed trade tensions without recession, cushioned by front-loading trade, limited tariff damage, and AI investments.
• India benefits from a stable global environment, reducing tail risks for exports, capital flows, and commodity prices.
• Medium-term implications demand India strengthen domestic growth engines as external impulses flatten, requiring fiscal strategy adjustments.
• Budget 2026 and RBI's monetary stance must adapt to a range-bound global economy and potentially higher-for-longer interest rates.

Why It Matters: The World Bank's modest global growth upgrade signals stability, but India must boost domestic engines for sustained growth.