India retains growth edge with 6.6% growth, World Bank forecasts; cuts global outlook

 Global growth forecasts are down to 2.5% for 2026, with the Middle East conflict and rising energy prices cited as key reasons. Despite this, India is set to remain the world’s fastest-growing major economy, projected at 6.6% in fiscal year 2026-27. However, higher energy costs may moderate India’s growth, while fiscal deficits are expected to widen across South Asia. Global growth forecasts are down to 2.5% for 2026, with the Middle East conflict and rising energy prices cited as key reasons. Despite this, India is set to remain the world’s fastest-growing major economy, projected at 6.6% in fiscal year 2026-27. However, higher energy costs may moderate India’s growth, while fiscal deficits are expected to widen across South Asia.