The World Bank has upgraded India’s GDP growth outlook for the current fiscal year to 6.5 percent from 6.3 percent in June, citing strong domestic demand, excellent agricultural production, and recent tax reforms. Despite challenges from US tariffs on exports and energy, India remains the fastest expanding major economy based on recent global reports. Key factors supporting growth include a better GST framework, increasing rural wages, and steady consumer spending. However, India’s forecast for the next year was lowered to 6.3 percent due to the risks posed by the 50 percent tariffs on Indian exports under Trump’s policies, affecting three quarters of goods. Supporting this view, both S&P and the Reserve Bank of India have maintained positive projections, with the RBI expecting 6.8 percent growth. A possible rate reduction in December could further help businesses. For now, India’s strong domestic market is its greatest shield against global challenges.
