India remains fastest-growing major economy despite global headwinds, says World Bank

India is expected to remain one of the fastestgrowing major economies in the world even as global growth slows down due to ongoing geopolitical tensionsAccording to the latest economic update by the World Bank India is likely to grow at around 66 per cent in FY27 IANS reportedHowever rising energy prices caused by the Middle East conflict and disruptions in global supply chains are expected to weigh on economic activity These external pressures could impact growth but Indiarsquos overall outlook remains relatively strongEconomic resilience supported by strong fundamentalsThe report highlights that Indiarsquos strong macroeconomic fundamentals provide a cushion against global uncertainties Key factors supporting resilience include high foreign exchange reserves low inflation and a stable financial systemAdditionally most of Indiarsquos public debt is denominated in the local currency reducing vulnerability to external shocks Efforts to diversify trade partners have also helped the country better manage global risks These factors together act as a buffer allowing India to maintain steady growth even in a challenging global environmentImportance of private sectorled growthThe World Bank emphasised the need to strengthen private sector participation to sustain longterm growth According to Paul Procee boosting private investment will be key to creating jobs and improving economic resilienceA stable and predictable business environment will play a crucial role in attracting investments This will also help generate employment opportunities especially for young people entering the workforceWhat sectors to focus on to achieve a ldquoViksit BharatrdquoTo achieve the vision of a developed nation often referred to as ldquoViksit Bharatrdquo India needs to focus on priority sectors These include energy infrastructure manufacturing tourism healthcare and agribusinessEncouraging investment in these areas can help drive growth at scale and support longterm economic stabilitySouth Asia growth global risks and policy challengesThe report also looks at the broader regional picture Growth in South Asia is projected to slow to 63 per cent in 2026 down from 7 per cent in 2025 mainly due to disruptions in global energy markets Despite this slowdown South Asia is still expected to grow faster than most other emerging and developing regions Growth is projected to recover to 69 per cent by 2027The global outlook remains uncertain The report warns that prolonged conflict could reduce global growth by up to 1 percentage point Inflation could also rise significantly increasing pressure on economies worldwideThe World Bank also noted the growing use of industrial policies across countries In South Asia governments are using such policies more frequently than in other regions although results have been mixedWhile global uncertainties persist India is wellpositioned to maintain strong economic growth With solid fundamentals and a focus on reforms the country can continue to navigate challenges and sustain its growth momentumWith IANS Inputs