India’s economy is projected to grow at a in the financial year 2025-’26, a World Bank report said on Tuesday.

This means that the international financial institution has retained its gross domestic product growth forecast for the current fiscal year. The projection was cut by 40 basis points to 6.3% in April.

A basis point is one-hundredth of a percentage point.

However, the World Bank flagged concerns about a potential slowdown in investment due to global economic uncertainty. India will be the fastest-growing large economy in the world at the projected rate, the report said.

The bank also cut its growth forecast for India by 20 basis points for 2026-’27 to 6.5%. The gross domestic product is expected to grow at 6.7% in 2027-’28, with economic activity “partly supported by robust services activity that contributes to a pick up of exports”.

The report came days after the Reserve Bank of India announced a larger-than-expected in its policy repo rate on June 6, bringing it down to 5.5%.

The repo rate is the interest rate at which the central bank lends money to commercial banks.

The Reserve Bank of India’s Monetary Policy Committee decides on changes to it every two months. Central banks usually reduce repo rates to stimulate economic growth by...