India is poised to remain the fastest-growing major economy, with the World Bank retaining its GDP growth forecast at 6.3% for the fiscal year 2025–26, according to the latest Global Economic Prospects report. This comes at a time when the global economic environment continues to be strained by trade disruptions, high interest rates, and subdued export demand from key economies.
While many countries are scaling down growth expectations due to tightening financial conditions and geopolitical instability, India’s economic trajectory stands out. The report attributes this continued momentum to strong domestic consumption, sustained public and private investment, and steady growth in the services sector.
“India’s resilience amid global challenges reflects the strength of its internal demand and well-calibrated macroeconomic policies,” the report noted. It also emphasized that prudent fiscal management and infrastructure-led capital expenditure have played a vital role in supporting economic activity.
Although export demand remains muted due to slowing growth in advanced economies, India’s diversified trade portfolio and expanding digital economy are helping offset some of the external shocks.
The World Bank’s reaffirmation underscores growing investor confidence in India’s long-term potential, bolstered by structural reforms and a favourable demographic profile. As global uncertainty continues, India’s stable outlook provides a bright spot in the international growth landscape.