World Bank trims India's growth forecast for 2025-26
The World Bank just nudged up India's growth forecast to 6.5% for 2024-25, crediting strong local demand and better-than-expected agricultural output.
But for 2025-26, the outlook dips to 6.3%, mainly because new US tariffs are expected to slow down Indian exports.
US tariffs could hit Indian exports
India is still the fastest-growing major economy—think rising spending at home, better rural incomes, and government moves like GST reforms.
But there's a catch: nearly one-fifth of India's exports go to the US, and three-quarters of those now face higher US tariffs, which could make it tougher for businesses selling abroad.
AI can help, but job disruptions are a risk
South Asia as a whole is also set to slow down next year due to global uncertainties.
The World Bank points out that AI can boost productivity but warns it could disrupt jobs unless countries invest in reskilling and job creation—something young professionals might want to keep an eye on.