World Bank raises India’s FY27 growth forecast to 7.1 per cent
The World Bank has raised India’s GDP growth forecast for FY27 to 7.1 per cent, up from 6.6 per cent earlier, citing resilient domestic demand and stronger-than-expected activity.
The upgrade follows 7.8 per cent real GDP growth in the April-June quarter. The Bank said industry is forecast to perform better than expected and offset a weaker agricultural outlook. Private consumption is expected to remain the main driver.
It also raised the South Asia growth forecast for 2026 to 6.9 per cent, largely driven by India. Excluding India, the region’s forecast was lowered to 3.6 per cent on Bangladesh’s downgrade.
Risks remain: elevated energy prices, a severe El Nino and a stock-market correction could hurt the outlook, the Bank warned. Inflation is expected to stay elevated into 2027.
India’s FY26 growth reached 8.6 per cent, the Bank noted. Q1 FY27 grew 7.8 per cent. Private AI investment in India tripled between 2024 and 2025, the report added.
Khabar 24h Editorial Desk — our explainers are prepared by the Khabar 24h editorial team using AI-assisted research tools, and every piece is reviewed by a human editor before publishing. We do not claim original reporting: our work is turning complex topics into simple, accurate summaries. Spotted an error? Write to contact@khabar24h.com — our corrections policy aims for same-day review.
More from this author →
Leave a Reply