India is projected to maintain the fastest growth rate among the world’s largest economies, at 6.3% in FY 2025-26, the report noted.
The World Bank has cut its growth forecast for India to 6.3% in the current financial year 2025-26 from the 6.7% it had projected in January.
This 0.4% point cut in India’s growth forecast is in line with an equivalent reduction in the global growth forecast to 2.3%.
The World Bank’s new forecast for India — included in the June 2025 update of its Global Economic Prospects report released on Tuesday (June 10, 2025) in Washington.
Which is lower than the 6.5% growth for 2025-26 that the Reserve Bank of India had predicted in its latest monetary policy announcement on June 6.
However, the World Bank also predicted that growth is expected to rise again in the next two years (FY27 and FY28) to 6.6 percent a year.
Activity has moderated in India—South Asia’s largest economy—largely reflecting a slowdown in industrial production, offsetting steady services activity and the recovery in agricultural output.
That’s the weakest performance in 17 years, outside of outright global recessions