India's economy is expanding at 7.2%, outpacing most major economies. The World Bank attributes this strength to robust home demand, which continues to absorb domestic credit and consumption.
The forecaster expects growth to ease to 6.5% next year as external headwinds—specifically US tariffs—begin to bite on India's export-dependent sectors. This moderation is still healthy by global standards.
The slowdown reflects a shift in momentum rather than a collapse. Tariff-driven pressure on international trade is expected to dampen growth, but domestic spending should remain the primary engine.
