India to Remain Fastest-Growing Economy: World Bank

Washington : India is set to retain its position as the world’s fastest-growing major economy, according to the latest report released by the World Bank. The international financial institution has kept India’s GDP growth projection unchanged at 6.3% for the fiscal year 2025–26, despite ongoing global uncertainties and pressures on exports.

The World Bank stated that while global trade remains subdued due to geopolitical tensions and economic slowdowns in advanced nations, India has demonstrated remarkable resilience. The country’s strong domestic demand, infrastructure investments, and stable macroeconomic policies are expected to continue driving growth. The report also notes that inflation in India is gradually aligning with target levels, giving further confidence to investors and policymakers.

A key takeaway from the report is the World Bank’s rejection of fears of an imminent global recession. Despite sluggish growth in many developed economies, including the Eurozone and parts of North America, the global economy is showing signs of stabilization, it said. India, in particular, stands out due to its demographic advantage, digital innovation, and ongoing structural reforms.

Economists within the World Bank emphasized that India’s growth is broad-based and supported by key sectors like manufacturing, services, and agriculture. Government initiatives like “Make in India” and continued reforms in the labor and financial sectors have also contributed positively to the country’s economic outlook.

The report also acknowledged certain risks, such as pressure on exports due to weak global demand, and the potential volatility in international commodity prices. However, these are expected to be counterbalanced by domestic consumption, increased public and private investment, and robust service sector performance.

India’s consistent economic performance puts it in a favorable position among emerging markets. With a population of over 1.4 billion, rapid urbanization, and increasing digital penetration, India’s medium-term outlook remains strong.

The World Bank’s affirmation comes at a time when international agencies are revising growth figures for many economies. For India, the message is clear—despite external headwinds, it remains a pillar of global economic stability and a beacon of growth in the developing world.