World Bank Updates GDP Growth Forecasts

The World Bank has revised its growth projections for India’s GDP. It stated that the country’s economic growth rate is expected to reach up to 6.6% in the 2026–27 fiscal year. This is one percentage point lower than the estimated 7.6% for the 2025–26 fiscal year. It is also 0.3% lower compared to the Reserve Bank of India’s (RBI) projection of 6.9% mentioned in a recent review. In its report released last October, the World Bank had earlier projected that India’s GDP growth could be around 6.3% in 2026–27.

Despite rising retail inflation in the current fiscal year due to pressures in the energy sector, the World Bank expects domestic demand and consumption to remain key drivers supporting India’s GDP growth.