New Delhi, Oct. 7 -- The World Bank on Tuesday raised its forecast for India's FY26 GDP growth to 6.5% from 6.3% projected in June, while cutting its FY27 estimate by 20 basis points to 6.3%.

The downgrade for FY27 reflects the impact of higher-than-expected tariffs imposed on Indian exports by US President Donald Trump.

Despite the tariff headwinds, India is expected to remain the world's fastest-growing major economy, supported by resilient domestic demand, according to the World Bank's South Asia Outlook report.

The World Bank noted that domestic conditions, including agricultural output and rural wage growth, have performed better than anticipated.

The report highlighted that nearly one-fifth of India's goods exports were directed...