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World Bank lifts India FY27 growth to 7.1%
The Indian Express··6d ago
The World Bank raised India's GDP growth forecast for the current fiscal by half a percentage point to 7.1 percent. The South Asia Economic Update, released on Tuesday, sees South Asia growing 6.9 percent in 2026. Excluding India, regional growth is seen at 3.6 percent, down from 4.1 percent earlier. For 2027-28, the Bank expects India to grow 7.2 percent.
Prism
What It Means For You
- The Bank expects industry and services strength to offset agricultural weakness.
- Sub-par monsoons are seen reducing agricultural output and rural demand while lifting food inflation.
- The update lands a day before the RBI's interest rate decision on Wednesday.
What's Happening
- India's April-June growth rate of 7.8 percent has prompted several forecast upgrades.
- On September 23, S&P, Fitch, the OECD and the ADB raised FY forecasts to 6.9-7.1 percent.
- Only 23 percent of Indian firms report using AI, versus 43 percent in the US, the Bank said.
The Numbers Behind The Forecast
- The report is titled Adopting AI for Growth in the twice-yearly South Asia series.
- India's AI Adoption Index score is 0.27, against 0.85 for the US.
- Almost 75 percent of Indian firms expect almost no productivity benefit from AI, the Bank found.
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