World Bank Upgrades India’s GDP Growth Forecast to 6.6% for FY27
In April 2026, the World Bank (WB) released its latest “South Asia Economic (SAE) Economic Update April, 2026: Working with Industrial Policy” report. The report has slightly raised India’s Gross Domestic Product (GDP) growth forecast for the Financial Year 2026-27 (FY27) to 6.6% from its previous estimate of 6.3%.
In April 2026, the World Bank (WB) released its latest “South Asia Economic (SAE) Economic Update April, 2026: Working with Industrial Policy” report. The report has slightly raised India’s Gross Domestic Product (GDP) growth forecast for the Financial Year 2026-27 (FY27) to 6.6% from its previous estimate of 6.3%.
- However, the report projected that India’s GDP growth is expected to moderate compared to previous years due to headwinds from West-Asia conflict.
Key Findings:
GDP in FY26: As per the report, India’s GDP growth rate is expected to increase from 7.1% (in FY25) to 7.6% (in FY26), driven by robust domestic demand and export resilience.
Fiscal Indicators: The report estimated that rationalisation of Goods and Services Tax (GST) rates is expected to support consumer demand in the 1st half (H1: April-September, 2026) of FY27. However, high global energy prices could increase inflation and restrict the spending power of households.
South Asia Growth Rate: The report has also projected that the growth in South Asia will ease to 6.3% in Calendar Year 2026 (CY26) from 7% (CY25), primarily due to disruptions in the global energy supply chain.
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