World Bank Projects India’s GDP Growth At 7.2 Percent

India’s economy is getting stronger day by day. By 2047, as projected by many studies, the Indian economy will be the strongest economy in the world. Now, the World Bank has projected growth at 7.2%. Let’s understand the Indian economic outlook.

According to the World Bank’s most recent Global Economic Prospects study, India’s resilience in 2025 helped to boost overall growth in South Asia, mitigating the effects of increased policy uncertainty and international trade conflicts.

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The World Bank predicts that India’s economy will continue to be one of the fastest growing major economies in the world, with a 7.2% growth rate in FY 2025-26, fueled by robust domestic demand despite growing global trade tensions. According to the study, India’s growth is anticipated to slow slightly to 6.5 percent in FY 2026-27 if US import tariffs remain high, before increasing to 6.6 percent in FY 2027-28. This was credited by the bank to a rebound in exports, higher investment flows and robust services activity.

The bank claims that India’s growth is mainly reflecting robust domestic demand, including strong private consumption, supported by earlier tax reforms and improvements in real household earnings in rural areas.

It also predicted in its most recent Global Economic Prospects report that India would be less affected by higher US tariffs due to a faster than expected increase in domestic demand.

India continues to be the main engine of growth in South Asia. The rate of expansion in South Asia, excluding India, is predicted to increase to 5.0 percent in 2026 and 5.6 percent in 2027, while the region as a whole is predicted to slow to 6.2 percent in 2026 before recovering.