The World Bank has raised its growth forecast for India to 7.1 percent for the 2026-27 fiscal year, up from 6.6 percent, in its October India Development Update.

The upgrade reflects a strong start to the fiscal year, with growth in the first quarter of FY27 estimated at 7.8 percent. The Bank expects growth of 7.2 percent in FY28.

The report points to resilient domestic demand, a steady services sector and improving investment as the main drivers. Average consumer inflation is projected at 4.8 percent.

The World Bank also flagged risks that could knock the economy off course. These include higher oil prices, a possible El Nino weather event and sharp corrections in global financial markets.

The forecast cements India’s position as the fastest-growing major economy. It comes at a time when most large economies are slowing, and it gives New Delhi a strong platform ahead of key state elections.

For households, sustained high growth could mean more jobs and rising incomes, though the Bank cautioned that global shocks remain the biggest threat.