World Bank raises India FY27 growth to 7.1%
The World Bank has raised India’s GDP growth forecast for FY27 to 7.1 per cent, up from 6.6 per cent projected in April.
The upgrade, in the Bank’s latest India Development Update, follows a stronger-than-expected 7.8 per cent growth print in the first quarter.
India’s growth accelerated to 7.8 per cent in FY26 from 7.2 per cent in FY25, driven by strong investment and solid private consumption.
For FY28, the Bank expects growth of 7.2 per cent, supported by domestic demand, industry and services.
It credited reforms including labour code consolidation, GST changes, tariff rationalisation and infrastructure investment.
But it warned of elevated risks: high oil prices, a possible El Nino and stock market corrections that could trigger capital flow volatility.
The report also found 23.4 per cent of Indian formal firms now use AI, compared with 42.7 per cent in the US. South Asia as a whole is forecast to grow 6.9 per cent in 2026.
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