World Bank

India’s economy is projected to grow at 6.3% in FY2025-26, retaining its position as the fastest-growing major global economy, according to the World Bank’s latest Global Economic Prospects report. However, this projection marks a downward revision from earlier estimates due to weakening exports, rising trade barriers, and global policy uncertainty. While domestic sectors like services and construction show resilience, external headwinds are expected to constrain overall growth. The World Bank also foresees a slight recovery in the years ahead, provided geopolitical tensions ease.

In a significant move to support Sri Lanka’s economic recovery, the World Bank has announced a USD 1 billion package over the next three years aimed at fostering job creation and private sector growth. This initiative follows discussions between World Bank President Ajay Banga and Sri Lankan President Anura Kumara Dissanayake. The project intends to create a thriving economic environment by promoting local industry, digitalization, and infrastructure development, while also attracting private investment.

India has made remarkable strides in poverty reduction over the past decade, lifting an estimated 171 million people out of extreme poverty between 2011-12 and 2022-23, according to the World Bank's latest Poverty and Equity Brief. This success story reflects a broader socioeconomic shift, characterized by a sharp decline in both rural and urban poverty rates, a narrowing rural-urban divide, and notable progress in employment generation—particularly among women.