West Asia conflict – The World Bank has reduced India’s growth outlook for the current financial year 2026-27 to 6. 6% from 7.

2%, citing the impact of the war in West Asia on domestic and government consumption as well as industrial activity. The World Bank’s India Development Update report said that “in the absence of conflict”, India’s GDP growth was projected to be 7.

2%, a reflection of better-than-expected growth in 2025–26, “strong initial momentum” in the fourth quarter of that year as indicated by high-frequency data, and a “broad pro-growth reform agenda”.