♦ The World Bank has raised India’s growth forecast for FY26 to 6.5%, up from its earlier projection of 6.3% in June.

♦ The revision reflects resilient domestic demand, a strong rural recovery, and the positive impact of recent tax reforms.

♦ It said, India is expected to remain the world’s fastest-growing major economy, driven by strong consumption growth, improved agricultural output, and rising rural wages.

♦ However, it downgraded the country’s growth forecast to 6.3 per cent for the financial year 2027 on the back of the 50 percent tariff imposed by the US.

♦ For other South Asian economies, the report projects mixed trends.

♦ Bangladesh is expected to grow at 4.8% in FY26, while Bhutan’s forecast has been downgraded to 7.3% due to delays in hydropower construction, although growth is expected to rebound in FY27.

♦ Growth in the Maldives is projected to slow to 3.9%, and Nepal’s economy is likely to expand by only 2.1%, amid recent unrest and heightened political and economic uncertainty.

♦ Sri Lanka, on the other hand, has seen its FY26 forecast upgraded to 3.5% due to strong performance in tourism and service exports.