India's Economic Future Amid Global Uncertainties: A World Bank Perspective

The World Bank has adjusted its projection for India's economic growth to 6.3% for the fiscal year 2025-26, attributing the change to ongoing pressure on exports triggered by global uncertainties. Despite this adjustment, India is anticipated to maintain its position as the fastest-growing major economy in the world.

In a recent report, the World Bank lowered its growth forecasts for nearly 70% of economies worldwide, citing heightened trade tensions and policy uncertainty as significant factors. While the global growth rate is expected to slow to 2.3% in 2025, India's economy is set to remain robust, although slightly dampened by external factors.

The report also notes that construction and services have shown steady growth, while agricultural output has rebounded, driven by strong rural demand. Looking ahead, investment growth is predicted to decelerate due to increased global policy uncertainty, but India's economy is expected to recover modestly in subsequent years.

(With inputs from agencies.)