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World Bank raises India FY27 growth forecast to 7.1%
The Hindu BusinessLine··6d ago
The World Bank on October 6, 2026 raised India's growth forecast for the current fiscal by 50 basis points to 7.1 percent. Its India Development Update said GDP grew 7.8 percent in the first quarter of FY27. The bank said growth in the second half of the year is set to slow and flagged elevated external risks.
Prism
What It Means For You
- The revised 7.1 percent FY27 outlook is 50 basis points above the bank's earlier forecast.
- Private consumption is expected to remain the main growth driver, the update said.
- A rainfall deficit through August is projected to weigh modestly on rural demand.
What's Happening
- India's growth accelerated to 7.8 percent in FY26 from 7.2 percent in FY25, the bank said.
- Industry is now forecast to outperform earlier expectations and offset weaker agriculture.
- The OECD also lifted its FY27 GDP forecast by 80 basis points to 7.1 percent last month.
What the Update Flags Next
- External risks listed include global oil prices, El Nino and stock market corrections.
- Assuming energy supply normalises in early 2027, growth is projected at 7.2 percent in FY28.
- South Asia is projected to grow 6.9 percent in 2026 in the companion regional update.
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