India is anticipated to continue to be the fastest-growing major economy, supported by sustained strength in consumption growth, according to the World Bank, which on Tuesday increased its growth prediction for the current fiscal year to 6.5% from the previous estimate of 6.3%.

The World Bank also warned that the United States' 50% tariffs on Indian goods will have an impact on the nation in the upcoming year.

It revised down the GDP growth estimate for 2026–2027 from 6.5% to 6.3%.

According to the World Bank's South Asia Development Update (October 2025), "India is expected to remain the world's fastest-growing major economy, underpinned by continued strength in consumption growth."

Conditions at home have been stronger than anticipated, especially in terms of agricultural output and wage growth in rural areas. Activity is anticipated to benefit from the government's Goods and Services Tax (GST) reforms, which include lowering the number of tax brackets and streamlining compliance.

"The imposition of a 50% tariff on approximately three-quarters of India's goods exports to the United States has resulted in a downgrade of the forecast for FY26/27," the statement stated.