Event | World Bank retains India's FY26 GDP growth forecast at 6.3%. |
Date | June 10, 2025 |
Report | World Bank's Global Economic Prospects report. |
Global GDP Growth (2025) | Forecasted at 2.3%, the slowest since 2008 (excluding recession years). |
Global Growth Downgrades | 70% of economies face downgrades due to trade tensions, weak investment, and slow exports. |
India's FY26 GDP Forecast | Retained at 6.3% (down from January's 6.7% projection). |
India's FY27 GDP Forecast | Cut by 20 bps to 6.5%. |
India's FY28 GDP Forecast | Raised to 6.7%, supported by strong services and export recovery. |
India's Economic Position | Remains the fastest-growing major economy globally. |
Drivers of Moderation | Weaker exports, rising global trade barriers, and slowing investment growth. |
RBI Monetary Policy | Repo rate cut by 100 bps in 2025, now at 5.50%. |
Inflation (FY26) | Expected to average 3.7%, allowing for policy easing. |
RBI Growth Forecast | Maintains 6.5% growth forecast for FY26. |
Government Growth Projection | Projects 6.3-6.8% growth for FY26. |
FY25 GDP Growth | Slowed to 6.5%, the lowest in four years. |
Fiscal Target (FY31) | Debt-to-GDP ratio targeted at 49-51%. |
Current Public Debt (FY26) | Estimated at 56.1% of GDP. |
Fiscal Consolidation | Expected through growing tax revenues and declining current expenditures. |