The World Bank has projected India's Gross Domestic Product (GDP) to grow by a robust 7.2% in the current fiscal year (FY26), ending March 31, 2026. This optimistic outlook is primarily attributed to strong domestic demand, encompassing robust private consumption, and improvements in real household earnings, particularly in rural areas. The multilateral financial institution, in its semi-annual Global Economic Prospects report released on January 13, 2026, also noted resilient services exports and an increase in merchandise exports despite challenges like US import tariffs. For the subsequent financial year (FY27), the World Bank has maintained its GDP growth forecast for India at 6.5%. While this indicates a slight moderation from the FY26 projection, India is still expected to retain its position as the fastest-growing major economy worldwide. The forecast for FY27 considers the assumption that a 50% US import tariff on certain Indian goods exports will remain in place, posing a potential dampening effect on trade. However, the World Bank suggests that stronger momentum in domestic demand and more resilient exports than previously anticipated will largely offset the adverse impacts of these tariffs. The Indian Ministry of Statistics' first advance estimates for FY26 placed GDP growth slightly higher at 7.4%. The consistent forecasts from the World Bank underscore India's economic resilience amid global uncertainties and trade tensions. The report also highlights efforts to diversify export markets to enhance resilience. Other institutions, like BMI, also project strong growth for India, with their latest forecast for FY27 at 7%.