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New Delhi: In a matter of great news for India amid global energy woes and raging West Asia crisis, World Bank has lifted India growth outlook for 2026. In the recent development, the World Bank has announced that India will remain the world’s fastest-growing major economy despite the economic shock from the conflict in the Middle East. With the big announcement made by the World Bank on Thursday, it has now raised its growth forecast for the country even as it cut projections for much of the global economy. Here are all the details you need to know about the Global Economic Prospects report, released by the World Bank.
In its latest Global Economic Prospects report, the World Bank upgraded India’s growth forecast for 2026 to 6.6 per cent from its January estimate of 6.5 per cent and raised its 2027 projection to 7.2 per cent from 6.6 per cent, citing stronger-than-expected domestic demand and economic resilience.
“India remains the fastest growing large economy in the world,” World Bank Deputy Chief Economist Ayhan Kose said during a media briefing on the Bank’s latest Global Economic Prospects report.
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The World Bank’s latest report projects South Asia to remain the fastest-growing region in the world in 2026, although regional growth is expected to slow to 6.3 per cent from 7 per cent in 2025 because of higher energy prices and broader fallout from the conflict.
The World Bank on Thursday warned that the conflict in the Middle East is expected to slow global growth to 2.5 per cent in 2026 from 2.9 per cent in 2025, marking the weakest pace since the onset of the Covid-19 pandemic. Higher oil prices, rising inflation and tighter financial conditions are expected to weigh on activity across much of the world.
Even so, India was one of the few major economies to receive an upgrade. Kose said the stronger outlook was being driven by a rebound in domestic demand and exports.
“The stronger-than-expected growth, driven by a rebound in domestic demand and exports,” had led to the upward revision, he said.
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