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World Bank Retains India's FY26 GDP Growth Forecast at 6.3%

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World Bank Retains India's FY26 GDP Growth Forecast at 6.3%

AspectDetails
EventWorld Bank retains India's FY26 GDP growth forecast at 6.3%.
DateJune 10, 2025
ReportWorld Bank's Global Economic Prospects report.
Global GDP Growth (2025)Forecasted at 2.3%, the slowest since 2008 (excluding recession years).
Global Growth Downgrades70% of economies face downgrades due to trade tensions, weak investment, and slow exports.
India's FY26 GDP ForecastRetained at 6.3% (down from January's 6.7% projection).
India's FY27 GDP ForecastCut by 20 bps to 6.5%.
India's FY28 GDP ForecastRaised to 6.7%, supported by strong services and export recovery.
India's Economic PositionRemains the fastest-growing major economy globally.
Drivers of ModerationWeaker exports, rising global trade barriers, and slowing investment growth.
RBI Monetary PolicyRepo rate cut by 100 bps in 2025, now at 5.50%.
Inflation (FY26)Expected to average 3.7%, allowing for policy easing.
RBI Growth ForecastMaintains 6.5% growth forecast for FY26.
Government Growth ProjectionProjects 6.3-6.8% growth for FY26.
FY25 GDP GrowthSlowed 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 ConsolidationExpected through growing tax revenues and declining current expenditures.

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