World Bank Raises India's FY27 Growth Forecast to 6.6%

The World Bank has raised India's GDP growth forecast for FY 2026-27 (FY27) to 6.6%, up from its earlier estimate of 6.5%, citing resilient domestic demand and continued economic strength despite global uncertainties. It has also revised upward India's growth projection for FY28 to 7.2%.

According to the World Bank's Global Economic Prospects Report (June 2026), India is expected to remain the fastest-growing major economy in the world despite higher energy prices and global geopolitical tensions.

The report noted that:

Rural consumption remains strong.

Urban demand is showing signs of recovery.

Domestic demand continues to support economic activity.

Private investment remains resilient.

However, the World Bank expects India's growth to moderate from 7.7% in FY26 to 6.6% in FY27 due to elevated energy prices and rising input costs.

The World Bank's FY27 forecast is in line with the Reserve Bank of India's (RBI) latest growth projection of 6.6%.

About the World Bank

Established in 1944 at the Bretton Woods Conference.

Headquarters: Washington, D.C..

Part of the World Bank Group.

Provides financial and technical assistance to developing countries.

President: Ajay Banga

MD & CFO: Anshula Kant

Global Economic Prospects (GEP) Report

Published biannually by the World Bank.

Analyzes global, regional, and country-level economic trends.

Widely used by governments, policymakers, and investors.

India's Recent GDP Performance

India's economy grew by 7.7% in FY26.

GDP growth in the January–March 2026 quarter stood at 7.8%, reflecting strong economic momentum.

Reserve Bank of India (RBI):

Headquarters: Mumbai.

Governor: Sanjay Malhotra.

RBI's latest FY27 GDP growth forecast is 6.6%.

Exam Focus Points (Quick Revision Notes)

Report → Global Economic Prospects (GEP) Report

Released By → World Bank

India's FY27 Growth Forecast → 6.6%

India's FY28 Growth Forecast → 7.2%

Previous FY26 Growth → 7.7%

Key Driver → Resilient Domestic Demand

Global Growth Forecast (2026) → 2.5%

India's Status → Fastest-Growing Major Economy

World Bank Headquarters → Washington, D.C.

RBI FY27 Growth Forecast → 6.6%