The World Bank’s latest Global Economic Prospects report highlights continued uncertainty in global trade, but India’s resilient economic performance offers hope for future trade agreements. Despite a downward revision in global growth forecasts, India remains one of the fastestgrowing major economies.
Key Highlights:
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India’s Growth Forecast: The World Bank has lowered India’s FY26 GDP growth projection to 6.3%, down from 6.7% in January, citing weaker exports and rising trade barriers.
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Global Slowdown: The report warns that global growth will slow to 2.3% in 2025, marking the weakest performance in 17 years outside of recessions.
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Trade Barriers & Policy Uncertainty: Rising tariffs and geopolitical tensions are dampening trade prospects, affecting India’s export outlook.
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India’s LongTerm Outlook: Growth is expected to recover to 6.6% in FY27, supported by strong services activity and export revival.
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Potential Trade Agreements: India remains hopeful of securing new trade deals, particularly with the U.S. and other key partners, as global trade negotiations continue.
While global economic uncertainty persists, India’s steady growth and policy resilience position it as a strong contender for future trade agreements, reinforcing its role in the global economy.
Sources: Fortune India, The Hindu, Indian Express