The World Bank on Tuesday raised India’s economic growth forecast for the current financial year to 6.5% from its earlier estimate of 6.3% announced in June, but trimmed 2026-27 projection by 20 basis points citing steeper-than-expected US tariffs. In its biannual South Asia Development update, the World Bank noted that “India is expected to remain the world’s fastest-growing major economy, underpinned by continued strength in consumption growth. The government’s reforms to the Goods and Services Tax (GST)—reducing the number of tax brackets and simplifying compliance—are expected to support activity," it said. For the financial year 2026-27, the World Bank has lowered India’s growth projection to 6.3% from its earlier estimate of 6.5% announced in June. The World Bank said that higher US tariffs would weigh on India’s exports. The World Bank’s upgrade on India’s growth projection for the current financial year comes after better-than-expected numbers for April-June quarter. India’s gross domestic product (GDP) growth accelerated to 7.8% in the quarter ended June 30, as per the official data. Several agencies have revised their projections on India’s GDP growth following the better-than-expected Q1 data and rollout of GST rate rationalisation, which is expected to significantly boost consumption. (ICE NEW DELHI)

Fonte notizia: Decccan Herald