The World Bank has downgraded its outlook for global economic growth this year amid a broad-based slowdown in emerging markets and softer output in the US, but upgraded its forecast for India. The bank expects the world economy to grow by 2.8%, 0.2 percentage point slower than its January estimate. To download the full report, click here.

India, however, is one of the few countries for which the World Bank has upgraded its forecast. The bank expects India to be the fastest-growing major economy in 2015, expanding by 7.5% and outpacing China in 2016 and 2017. Read more here.

Following the release of the latest Global Economic Prospects report, World Bank chief economist and senior vice-president Kaushik Basu said that with an expected growth of 7.5% this year, up from the previous forecast of 6.4%, India is leading the World Bank’s growth chart of major economies. China is projected to grow at 7.1% this year. Click here to read more.

With the exception of India and a few other countries, the bank warned that developing economies such as China must confront an era of slower growth. The bank’s intervention comes amid mounting evidence that the steady boost the world economy has derived for years from the rise of countries such as Brazil and China is becoming a drag. Read here.

“Global growth has yet again disappointed," said Basu. But the bank expects global economic growth in 2016 to accelerate to 3.3%, barring trouble in emerging markets as the US Federal Reserve moves toward raising rates. The bank also assumes there will be no repeat of the type of volatility that struck emerging markets in mid-2013. Then, former Federal Reserve chief Ben Bernanke set off the so-called taper tantrum that triggered emerging-market bond, equity and currency selloffs when he signalled a pullback in the central bank’s stimulus. Read more here.

Read here a commentary on why the US Federal Reserve’s grasp on economic reality hasn’t been anywhere near as strong as you might hope or expect.

Developing countries could have to confront serious issues in 2015 since once the US finally increases its interest rates from record lows, borrowing will become more costly for emerging and developing economies, said the World Bank in its report. Developing countries are expected to grow 4.4% this year, likely to reach 5.2% and 5.4% in 2016 and 2017, respectively. Read more here.

“We at the World Bank have just switched on the seat belt sign," Basu said at a press conference in Washington. “We are advising nations, especially emerging economies, to fasten their seat belts." Read here.

The World Bank joined the International Monetary Fund (IMF) in urging the Federal Reserve to hold off raising rates until next year, citing an uneven US recovery and the risks to emerging markets of tightening policy any sooner. A premature move by the Fed could cause the dollar to strengthen, which may slow the US economy and sideswipe emerging and developing countries, Basu said. IMF issued a similar warning last week, urging the Fed to delay raising rates until next year unless growth and inflation pick up more than expected. Click here to read more.

Meanwhile, investors are becoming increasingly wary. The Institute of International Finance—an industry group representing around 500 of the world’s largest banks, insurance firms, hedge funds and other financial institutions—forecasts capital flows into emerging markets fall to their lowest level this year since the financial crisis. Read here.