India retains growth edge with 6.6% growth, World Bank forecasts; cuts global outlook

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The World Bank forecasts a global growth slowdown to 2.5% in 2026 largely due to the Middle East conflict and rising energy prices. Despite these challenges, India is projected to maintain its status as the fastest-growing major economy at 6.6% growth in fiscal year 2026-27, though higher energy costs and widening fiscal deficits in South Asia may moderate this growth.

Global growth forecasts are down to 2.5% for 2026, with the Middle East conflict and rising energy prices cited as key reasons. Despite this, India is set to remain the world's fastest-growing major economy, projected at 6.6% in fiscal year 2026-27. However, higher energy costs may moderate India's growth, while fiscal deficits are expected to widen across South Asia.