World Bank ups India's GDP growth projection to 7.1% for FY27

The World Bank on Tuesday (October 6, 2026) raised India's Gross Domestic Product (GDP) growth forecast for the current fiscal to 7.1%, up 0.5 percentage points from its April projections, driven by better-than-expected print for the first quarter.

"We have upgraded our FY27 growth forecast to 7.1% from 6.6% in April, as growth has held up better than expected despite trade and geopolitical uncertainties," the World Bank said in its latest India Development Update.

India's growth accelerated to 7.8% in FY26 from 7.2% in FY25, driven by strong investment and solid private consumption, as the favourable policy and credit environment outweighed trade tensions.

“Rural consumption initially outpaced urban demand supported by strong agricultural performance, rural income support, food subsidies, and low inflation, while urban consumption strengthened later in the year following income-tax relief and GST cuts,” it said.