The World Bank has raised India’s GDP growth forecast to 7.2% for FY26. The revision reflects strong domestic demand, tax reforms, and services-led resilience. Despite global trade tensions and US tariffs, India remains the fastest-growing major economy.

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• India FY26 GDP growth raised to 7.2%
• Earlier June 2025 estimate was 6.3%
• Upgrade driven by strong domestic demand
• Private consumption remains robust
• Tax reforms improved disposable incomes
• Rural spending supported growth momentum
• Services sector continues to lead expansion
• FY27 growth expected to moderate to 6.5%
• US tariffs assumed to stay during forecast
• India remains fastest-growing major economy