World Bank Raises India's GDP Growth Forecast To 7.1% For This Fiscal
Xtreme News India
06-10-2026 16:37:40
550723256
World Bank Raises India's GDP Growth Forecast To 7.1% For This Fiscal
New Delhi (Special correspondent) - The World Bank on Tuesday raised India's GDP growth forecast for the current fiscal to 7.1 per cent, 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 per cent from 6.6 percent 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 per cent in FY26 from 7.2 per cent 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.
The momentum has carried into FY27, with GDP growing 7.8 per cent in Q1, above expectations, before moderating in subsequent quarters, it said.
Private consumption is expected to remain the main driver of growth although a rainfall deficit through August is likely to weigh modestly on rural demand, while subdued government consumption will stay muted, it said.
The investment outlook is broadly unchanged, with heightened global uncertainty weighing on private investment as frontloading fades, partly offset by supportive financial and policy conditions, including stronger public investment, it said.
Contact For News & Advertisement.
