Current Affairs - Economy - Discussion

The World Bank has adjusted its projection for India’s GDP growth for the fiscal year 2025-26, lowering it from an earlier estimate of 6.7% to 6.3%. This downgrade is attributed to various factors, including weaker private investment and a reduction in public capital expenditure. Additionally, broader regional economic struggles in South Asia, influenced by political and financial instability in neighbouring countries, have contributed to this more cautious outlook. The revision reflects growing concerns about both global and domestic economic environments impacting India’s near-term growth potential.