World Bank, IMF break on India’s growth: Decreased estimate of next year’s growth rate

The impact of uncertainty about the slowdown of economy and policies around the world is now visible on India’s growth estimates. The World Bank has recently reduced its estimates of India’s economic growth rate for the next financial year (2025–26). Earlier, where he expected 6.7% growth, now it reduced by 0.4% 6.3% Is done.

What is the reason?

The World Bank has said in its report that India’s growth was slightly slow in the last financial year (2024-25). The main reason for this is the lack of investment by private companies and the expectation of government expenditure (especially on big projects).

According to the World Bank’s ‘South Asia Development Update’ report, even though the government softens interest rates or makes the rules easier to promote private investment, the economic weakness and uncertainty of policies around the world can lead to water on this benefit.

However, the report also states that if there is a tax cut, people’s expenses (private conference) may increase, and if government investment schemes are implemented better then it will also support growth. However, there is no good news for changes in business policies and slow growth of growth around the world. The report also said that the growth possibilities for the entire South Asia region have weakened a bit due to global uncertainty.

What is IMF to say?

Not only the World Bank, a day ago, the International Monetary Fund (IMF) also reduced India’s GDP growth for the next financial year (2025-26). 6.2% Is done. The IMF expected 6.5% growth in January. He has given stress in business and global uncertainty, the main reason for reducing estimates.

The IMF said in its ‘World Economic Outlook’ that India’s growth in 2025 will be largely stable and will grow at a rate of 6.2%. He believes that this growth will help a lot by the expenses of common people, especially in rural areas.

If we talk about the whole world, IMF estimates that the global economy will grow at a rate of 2.8% in 2025 (which is 0.5% less than earlier estimates), and in 2026 it can reach 3%. The IMF has also reduced growth estimates for countries such as Canada, Japan, Britain and America this year, while it has increased it for Spain. The growth rate for the US in 2025 is estimated to be just 1.8%.