Particle.news
Download on the App Store
18 ARTICLES
·
1h ago

World Bank Lifts India FY26 Growth Outlook to 6.5%, Trims FY27 on U.S. Tariffs

The report lowers South Asia’s 2026 forecast to 5.8% because of sharply higher U.S. duties on Indian exports.

Image
Image
india gdp growth
Image

Overview

  • The World Bank now projects India to grow 6.5% in FY26 and 6.3% in FY27 after a downgrade linked to export tariff headwinds.
  • President Donald Trump’s 50% levy covers roughly three-quarters of Indian goods sent to the U.S., with that market accounting for about one-fifth of India’s merchandise exports, or around 2% of GDP.
  • Labour‑intensive exporters such as textiles, gems and jewellery, and shrimp are identified as most exposed, with about $50 billion in shipments affected.
  • Near‑term resilience is attributed to robust consumption, better agricultural output, rising rural wages, and GST simplification that reduces tax brackets and eases compliance.
  • The update also flags AI-related labour disruption, estimating about 22% of South Asian jobs are exposed and noting roughly a 20% drop in listings for the most exposed roles since the launch of ChatGPT.