India's economy is projected to grow by 6.7% in the upcoming fiscal year starting April, according to the World Bank’s latest Global Economic Prospects report. This marks a slight improvement from the current fiscal year's estimated growth of 6.5%, though lower than the robust 8.2% recorded in 2023-24. Despite the slowdown, India remains the fastest-growing large economy globally, outpacing other major nations.

The report attributes the optimistic growth outlook to sustained expansion in the services sector and strengthening manufacturing activity, bolstered by government efforts to enhance the business environment. These factors are expected to support the projected 6.7% growth in the next two fiscal years.

In comparison, China, the second-fastest-growing major economy, is expected to grow by 4.5% this year, slowing to 4% in 2026. The United States, the world’s largest economy, grew by 2.8% last year, with growth expected to decelerate to 2.3% in 2025 and 2% in 2026.

Globally, economic growth remains sluggish, with the World Bank estimating a stagnant global GDP growth rate of 2.7% from 2023 through 2026.

The report, however, warns of potential risks to global and Indian economic growth from escalating trade tensions and protectionist policies. While not directly naming U.S. President-elect Donald Trump, it highlights "adverse trade policy shifts in major economies" as a threat to India's growth trajectory.

The World Bank’s projections closely align with the United Nations’ forecasts, which anticipate India’s GDP to grow by 6.6% in the current calendar year and 6.8% in 2025.

India's growth deceleration from the 8.2% high in 2023-24 is attributed to weakened investment and subdued manufacturing performance. Despite this, India’s economy continues to outshine its global peers, maintaining its position as a key driver of worldwide growth.

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