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World Bank Raises India GDP Growth Forecast to 7.1 Percent for FY27
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News18•06-10-2026, 13:30
World Bank Raises India GDP Growth Forecast to 7.1 Percent for FY27
- •The World Bank increased India's GDP growth projection for the current fiscal year to 7.1 percent, marking a 0.5 percentage point increase from its April forecasts.
- •The upgrade is driven by a better-than-expected first-quarter performance where GDP grew by 7.8 percent, despite trade and geopolitical uncertainties.
- •Private consumption is anticipated to remain the primary engine of economic growth, backed by favorable policy and credit environments.
- •Industrial activity exceeded expectations and is projected to offset a weaker agricultural outlook caused by a monsoon rainfall deficit.
- •India's exports have also performed better than anticipated, providing a key upside to the overall economic outlook for FY27.
Key Questions Answered
The World Bank raised India's GDP growth forecast for the current fiscal year to 7.1 per cent, marking a 0.5 percentage point increase from its April projection of 6.6 per cent.
India's growth accelerated to 7.8 per cent in FY26, driven primarily by strong investment and solid private consumption, which outweighed various trade tensions.
Private consumption is expected to remain the main driver of growth, while industrial activity has exceeded expectations and exports are projected to provide the primary upside relative to April forecasts.
