The World Bank has raised India’s GDP growth forecast for FY27 to 6.6%, reflecting a stronger-than-expected economic outlook supported by domestic demand and resilient external performance. The revised estimate marks an increase from its earlier projection of around 6.3%, indicating an improvement of approximately 30 basis points.
The upgrade comes even as India is expected to see a moderation in growth compared to the previous year. The economy is estimated to have grown at around 7.6% in FY26, representing a strong expansion phase. While growth is projected to ease slightly to 6.6% in FY27, India continues to retain its position as the fastest-growing major economy globally.
A key factor behind the upward revision is the strength of domestic demand. Consumption trends have remained robust, providing a stable foundation for economic growth. This sustained demand has exceeded earlier expectations and continues to act as the primary driver of economic activity across sectors.
In addition to domestic consumption, export performance has also contributed positively to the outlook. Despite global economic uncertainties and challenges in international trade, India’s exports have shown resilience. This has helped offset some of the external pressures and supported overall growth momentum.
The report highlights India’s ability to withstand global shocks as a major reason for the improved forecast. Even amid a volatile global environment marked by geopolitical tensions and fluctuating energy prices, the country’s economic fundamentals have remained relatively stable. This resilience has reinforced confidence in India’s medium-term growth trajectory.
However, the World Bank has also flagged several risks that could impact future growth. Ongoing geopolitical tensions, particularly in West Asia, continue to pose uncertainties for global energy markets. Volatility in oil prices can have implications for inflation, trade balances, and overall economic stability. Additionally, the possibility of a global economic slowdown remains a concern, which could affect export demand and investment flows.
From a regional perspective, growth across South Asia is expected to face some moderation due to these global headwinds. Despite this, India stands out as a key growth driver for the region, supported by its large domestic market and relatively strong economic fundamentals.
Overall, the upward revision in India’s growth forecast reflects a balance between strong internal drivers and external challenges. While the economy is expected to grow at a slightly slower pace compared to the previous year, the continued strength in consumption and exports indicates that growth momentum remains intact. The revised outlook signals confidence in India’s ability to navigate a complex global environment while maintaining a stable and relatively high growth trajectory.