World Bank sees India cushioned against West Asia war shocks
New Delhi, April 10 -- The World Bank on Thursday said India is well placed to weather the current global energy shock with ample buffers, including high foreign exchange reserves, fiscal space and low inflation, which will support growth despite global headwinds.
Addressing a conference a day after raising India's GDP growth projections for the current fiscal to 6.6%, the World Bank said India had dealt well the trade turbulence last fiscal and the Indian economy entered the current Middle East crisis, which has led to volatility in oil markets, "from a position of strength".
World Bank regional practice director, Prosperity, for South Asia, Sebastian Eckardt said, "India has strong policy buffers, high Forex reserves, fiscal space, to provide support as needed, as well as low inflation, and strong goals moment going into this current shock. And that strong growth momentum is supported by gross positive policies, including the EU FTA the new labour, all of these things, of course, reinforced and support strong growth momentum, and that's fine. Despite the global headwinds, we do see India and the region, continuing to be a very strong, performed gross performing region compared to other emerging markets across the world".
The World Bank in its South Asia Economic Update report released on Wednesday, had said India's growth is estimated to have accelerated from 7.1% in FY25 to 7.6% in FY26 (April 2025-March 2026), owing to strong domestic demand and export resilience. It projected growth to slow to 6.6% in FY27, but the projection is higher than 6.5% made in the Global Economic Prospects report released in January.
World Bank Lead Economist for India Aurelien Kruse said India has remained the fastest-growing large economy in the world in FY26, despite facing some of the highest tariffs on its exports globally....
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