New Delhi, April 23 (H.S): The World Bank has reduced the growth rate estimate for India for the current financial year 2025-26 by 0.40 percent to 6.3 percent. In its previous projection, the World Bank had estimated India’s economic growth rate for the financial year 2025-26 to be 6.7 percent.

The World Bank stated in its biannual regional outlook that India’s growth in the financial year 2024-25 was disappointing, as private investment saw slow growth and public capital expenditure did not meet government targets. According to the World Bank, the decision to lower the country’s Gross Domestic Product (GDP) has been made amid global economic weakness and policy uncertainty.

In the South Asia growth rate update by Taxing Times, it was mentioned, India’s growth rate is expected to decrease from 6.50 percent in the financial year 2024-25 to 6.3 percent in the current financial year 2025-26. This is due to the expected impact of global economic weakness and policy uncertainty on the benefits of private investment from monetary easing and regulatory simplification.

The International Monetary Fund (IMF) had, a day earlier on Tuesday, reduced its growth rate forecast for the current financial year 2025-26 from 6.5 percent to 6.2 percent. Along with this, the GDP growth rate estimate for the financial year 2026-27 has also been reduced from 6.5 percent to 6.3 percent.

Hindusthan Samachar / Jun Sarkar