'Forecast downgraded': US tariffs on India to slow down South Asian economic growth; here's what World Bank says
The World Bank forecasts a slowdown in South Asian economic growth to 5.8% in 2026, citing rising US tariffs on Indian exports. While government spending bolsters the region this year, a 50% tariff on Indian goods, impacting sectors like textiles and gems, is expected to drag down growth next year. India's own growth projections have been adjusted accordingly.
The World Bank forecasts a slowdown in South Asian economic growth to 5.8% in 2026, citing rising US tariffs on Indian exports. While government spending bolsters the region this year, a 50% tariff on Indian goods, impacting sectors like textiles and gems, is expected to drag down growth next year. India's own growth projections have been adjusted accordingly.
