World Bank raises India’s FY26 growth forecast to 6.5%, cites tariff risks ahead

The World Bank raised Indias FY26 growth forecast to 6.5% from 6.3%, while trimming FY27 to 6.3%, citing higher US tariffs. Despite this, India remains the fastest-growing major economy, driven by strong consumption and GST reforms. South Asias growth is projected to slow to 5.8% in 2026, though AI adoption could boost long-term productivity.