Washington— India is expected to maintain its position as the world’s fastest-growing major economy, with the World Bank projecting a 6.3% GDP growth rate for the fiscal year 2025–26.
According to the World Bank’s Global Economic Prospects report released Tuesday, India’s growth is expected to accelerate to an average of 6.6% annually in the two years following FY26, driven in part by strong services activity and a recovery in exports.
The report noted a moderation in India’s growth during FY2024–25 due to a slowdown in industrial output. However, construction and services remained resilient, while agriculture rebounded from prior drought conditions, supported by steady rural demand.
Globally, the outlook remains more subdued. The World Bank predicts global growth will slow to 2.3% in 2025—its weakest pace outside of global recessions since 2008. Growth forecasts have been downgraded for nearly 70% of countries, across all regions and income levels.
“A global recession is not anticipated,” the report stated. “However, if current projections hold, average global growth over the first seven years of the 2020s will be the slowest of any decade since the 1960s.”
Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank, warned that growth in developing countries has been steadily declining—from 6% in the 2000s to below 4% in the 2020s—creating what he called a “development-free zone” outside of Asia.
Slower global trade and weak investment growth have compounded the challenge, while global debt continues to hit record highs.
In response to rising trade barriers, the World Bank urged developing economies to diversify trade through strategic partnerships and regional agreements. It also emphasized the need for stronger fiscal frameworks, domestic revenue mobilization, and targeted spending to support vulnerable populations. (Source: IANS)
