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India's GDP growth projected at 7.2% for FY26 amid strong domestic demand and trade headwinds. World Bank raises India's GDP forecast to 7.2% for FY2025/26, citing robust domestic demand, strong private consumption, tax reforms, and improved rural earnings; the projection assumes a 50% US import tariff remains in place and foresees growth slowing to 6.5% in 2026-27 and rising to 6.6% in 2027/28, with export resilience and investment pickup partially offsetting tariff-related headwinds while the rupee has depreciated amid related capital outflows.
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<h1>India's GDP growth projected at 7.2% for FY26 amid strong domestic demand and trade headwinds.</h1> World Bank raises India's GDP forecast to 7.2% for FY2025/26, citing robust domestic demand, strong private consumption, tax reforms, and improved rural earnings; the projection assumes a 50% US import tariff remains in place and foresees growth slowing to 6.5% in 2026-27 and rising to 6.6% in 2027/28, with export resilience and investment pickup partially offsetting tariff-related headwinds while the rupee has depreciated amid related capital outflows.