Current Affairs - Economy - Discussion

The World Bank has upgraded India’s GDP growth forecast for FY26 to 6.5%, up from the earlier estimate of 6.3%. This upward revision is driven by strong domestic demand, a resilient rural economy, and the positive impact of Goods and Services Tax (GST) reforms that have enhanced revenue collection and formalization. India is expected to remain the fastest-growing major economy globally, supported by rising consumption, improved agricultural output, and infrastructure spending. Despite these optimistic projections, the World Bank has cautioned about potential risks from global economic uncertainty and external shocks, such as the U.S. tariff on Indian exports.