Stories
World Bank Raises India Growth Forecast to 7.1 Percent for FY27
C
CNBC TV18•06-10-2026, 12:27
World Bank Raises India Growth Forecast to 7.1 Percent for FY27
- •The World Bank increased India's economic growth projection for the ongoing fiscal year to 7.1 percent and maintained the FY28 forecast at 7.2 percent.
- •Regional growth for South Asia is projected at 6.7 percent in both 2027 and 2028, supported by strong remittance flows.
- •Chief Economist Franziska Ohnsorge noted that artificial intelligence could drive productivity and job creation in South Asia, though adoption currently lags behind advanced economies.
- •Key risks to the economic outlook include persistent energy inflation, high costs of imported energy, and potential disruptions from El Nino events.
Key Questions Answered
The World Bank has raised India's economic growth forecast to 7.1% for the ongoing fiscal year (FY27), up from its previous projection of 6.6%, and has kept its forecast for the 2027-28 financial year unchanged at 7.2%.
Franziska Ohnsorge noted that AI could become a vital driver of productivity and job creation in South Asia, particularly by adapting technologies to local requirements through small AI solutions, despite the region currently lagging advanced economies in AI adoption due to high costs and knowledge gaps.
The World Bank flagged persistent energy inflation, severe El Niño events, crop production disruptions, and reliance on imported energy as major downside risks to the region's growth outlook.
