India's Growth Remains Resilient Amid Trade Tensions

The World Bank raised India's growth forecast for the current fiscal year to 6.5% from 6.3%, highlighting strong consumption growth. However, US tariffs on Indian exports might impact future growth, leading to revised GDP projections for 2026-27 and 2027-28. Domestic reforms and agricultural strength support this resilience.

India's economic growth prospects have received a slight lift, as the World Bank updated its forecasts for the current fiscal year from 6.3% to 6.5%. This boost is largely attributed to robust domestic consumption, underscoring India's status as a rapidly expanding major economy.

However, cautionary notes were issued regarding the impact of 50% tariffs imposed by the United States on Indian exports, which could temper growth in the coming years. This has triggered downward adjustments in GDP growth predictions for 2026-27 and 2027-28.

In contrast, domestic conditions such as improved agricultural output and increased rural wages, alongside government reforms like the streamlined Goods and Services Tax, continue to underpin economic stability and growth optimism.

(With inputs from agencies.)