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World Bank Raises India FY27 Growth Forecast To 7.1 Percent
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Firstpost•06-10-2026, 16:23
World Bank Raises India FY27 Growth Forecast To 7.1 Percent
- •The World Bank has increased India economic growth forecast for FY27 by 50 basis points to 7.1 percent, driven by strong momentum in industry and services.
- •Medium-term growth is supported by structural reforms, infrastructure investment, and a rapidly expanding digital economy.
- •The lender warned that growth might moderate in the second half of FY27 due to external risks like high oil prices and El Nino disruptions.
- •India economy is projected to grow by 7.2 percent in FY28, following strong recent activity including 7.8 percent GDP growth in the April-June quarter.
- •AI adoption in India remains uneven with only 23 percent of firms utilizing it, pointing to an urgent need for enhanced skills and infrastructure.
Key Questions Answered
The World Bank has raised its economic growth forecast for India in FY27 by 50 basis points to 7.1 per cent, driven by strong momentum in the industry and services sectors.
The World Bank warned that growth could moderate in the second half of FY27 due to elevated external risks such as higher global oil prices, El Niño-related disruptions, and potential stock market corrections affecting capital flows.
India's AI adoption remains uneven, with only 23 per cent of Indian firms reporting AI usage compared to 43 per cent in the US, while India's AI Adoption Index stands at 0.27 against 0.85 for the US.
