NEW DELHI: India is expected to remain the world’s fastest-growing major economy, underpinned by strong consumption growth, improved agricultural output and rural wage growth, according to a World Bank report released on Tuesday.
The World Bank raised India’s growth forecast to 6.5 per cent for FY26 from its earlier projection of 6.3 per cent in June, citing resilient domestic demand, strong rural recovery and the positive impact of tax reforms.
The report pegs the growth of Bangladesh at 4.8 per cent in FY26 while for Bhutan, the forecast for FY26 has been downgraded to 7.3 per cent due to hydropower construction delays but is expected to reverse as construction speed picks up in FY27.
In Maldives, growth is projected to slow to 3.9 per cent in FY26, while in Nepal, recent unrest and heightened political and economic uncertainty is expected to cause growth to decline to 2.1 per cent in FY26, the report observes.