World Bank Raises India FY27 Growth Forecast to 7.1%, Flags Oil, El Niño Risks
The World Bank cited stronger April-June growth and said India’s industry and services momentum will offset weaker farm output and higher food inflation.
- On Tuesday, The World Bank raised India's fiscal 2026-27 growth forecast to 7.1% from 6.6%, while lifting South Asia's 2026 GDP growth forecast to 6.9% from 6.3%.
- Upgrades followed stronger-than-expected domestic activity, with India's economy growing 7.8% in the April-June quarter, prompting the Asian Development Bank and Fitch Ratings to raise their own forecasts.
- The Reserve Bank of India is expected to vote for a 25-basis-point rate increase on Wednesday, even as higher energy prices and El Niño conditions pose mounting risks to the outlook.
- World Bank Chief Asia Economist Franziska Ohnsorge warned that demographic tailwinds are 'beginning to fade,' with working-age population growth dropping to 0.6% over the next 25 years.
- While Indian companies are catching up on AI adoption, only 23% report using the technology compared to 43% of American firms, prompting the bank to urge acceleration for sustaining growth.
19 Articles
19 Articles
World Bank raises India FY27 growth forecast to 7.1%, sees AI as growth driver
The World Bank has raised India's FY27 growth forecast to 7.1% in its October South Asia Economic Update. The report says AI could shape the next phase of growth, even as weak agriculture remains a near-term risk.
World Bank Hikes India FY27 Growth Forecast to 7.1% from 6.6% on Stronger-than-expected Activity
Get latest articles and stories on Business at LatestLY. The World Bank has raised its forecast for India's economic growth in FY27 to 7.1 per cent from 6.6 per cent earlier, citing stronger-than-expected growth supported by robust domestic demand and exports, while warning that global risks remain elevated. Business News | World Bank Hikes India FY27 Growth Forecast to 7.1% from 6.6% on Stronger-than-expected Activity.
World Bank raises India FY27 growth forecast to 7.1% from 6.6% on stronger-than-expected activity
The World Bank has raised its forecast for India's economic growth in FY27 to 7.1 per cent from 6.6 per cent earlier, citing stronger-than-expected growth supported by robust domestic demand and exports, while warning that global risks remain elevated.
The Economic Times
Times of IndiaWorld Bank raises India FY27 growth forecast to 7.1%, flags oil, El Niño risks
The World Bank has upgraded India's economic growth forecast to 7.1% for fiscal 2026-27. This change reflects strong domestic consumption, despite ongoing inflationary pressures. Other major forecasters, including Moody's and S&P Global Ratings, have also revised their projections upward. However, elevated oil prices and potential climate-related challenges pose risks to this outlook. The World Bank emphasizes the need for accelerated AI adoptio…
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