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World Bank now reduced India’s economic growth estimate, due to this shock – India tv hindi

by Aaryan Srivastav
April 23, 2025
World Bank now reduced India's economic growth estimate, due to this shock - India tv hindi

Photo: File World bank

After the Fitch Ratings and the Reserve Bank of India (RBI), the World Bank has now reduced India’s economic growth rate. The World Bank on Wednesday reduced India’s growth estimate to 6.3% for the current financial year (2025–26) amid global economic weakness and policy uncertainty. Significantly, the trade war that broke out worldwide and the ongoing war between many countries has caused the pace of global economic growth. It is also expected to affect India. The World Bank had estimated India’s growth rate to be 6.7% for FY 2025-26 in its previous estimate. The World Bank in its biennial regional perspective said that the increase in FY 2024-25 in India was disappointing, as there was a slow increase in private investment and public capital expenditure could not meet government goals.

What was said in the report?

According to the World Bank’s recent report ‘South Asia Development Update-Taxing Times’, India’s economic growth rate is expected to decrease from 6.5 percent to 6.5 percent to 6.3 percent in FY 2025-26. The main reason for this is that even though repo rate cuts and regulatory sympathy can encourage private investment, this profit can be limited due to global economic lethargy and policy uncertainties.

The World Bank report also states that tax cuts are expected to promote private consumption, while better implementation of public investment schemes will give impetus to government investment. However, India’s export sector may face challenges due to changes in trade policies and recession in global growth. In addition, the report mentions that the economic possibilities of South Asia have also weakened due to global economic uncertainties and development estimates have been cut for most countries.

All these also reduced

The International Monetary Fund (IMF) has also reduced India’s GDP growth rate on Tuesday. In January, it has now been reduced to 6.2 percent for the current financial year as against the estimated 6.5 percent. Fitch Ratings have reduced the growth rate of India’s GDP (GDP) for the current financial year 2025-26 to 6.4 percent. The RBI has reduced its growth estimate for the financial year ending March 2025 to 6.6 percent from the previous estimate of 7.2 per cent for the financial year ending March 2025 amid letters.

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