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On October 7, the World Bank raised India’s GDP growth forecast for the fiscal year 2025-26 to 6.5%. In April, the World Bank had lowered India’s growth forecast for 2025-26 from 6.7% to 6.3%.

The World Bank states that India will remain the world’s fastest-growing major economy due to continued strength in consumption. Furthermore, changes in GST will also support economic activity.

However, the report lowered India’s growth forecast for 2026-27 to 6.3%. Previously, the growth forecast for FY27 was 6.5%. The World Bank attributed this to the US’s 50% tariff.

According to the World Bank, this high tariff will adversely impact India’s exports, hence the slightly lowered growth forecast for FY27.

RBI forecasts 6.8% economic growth

Earlier, the RBI also raised its GDP growth forecast for the country from 6.5% to 6.8%. This decision was made during the Monetary Policy Committee meeting held from September 29th to October 1st. RBI Governor Sanjay Malhotra announced this on October 1st.

What is GDP?

GDP is used to track the health of the economy. It reflects the value of all goods and services produced within a country over a period of time. It also includes foreign companies producing goods within the country’s borders.