World Bank Raises India’s FY27 Growth Forecast to 6.6%
Why in the news
The World Bank’s latest Global Economic Prospects nudged India’s outlook upward even as it lowered the world outlook because of the West Asia conflict and costlier energy.
Key facts
- Reasons for upgrade: firm domestic demand, robust consumption in villages, a pick-up in cities, and the likely benefit from trade agreements and structural reforms.
- Global view: growth of 2.5% in 2026 against 2.9% in 2025, the slowest since the COVID-19 pandemic.
- Cause of global downgrade: West Asia conflict and higher energy prices.
India’s projections
| Year | GDP growth | Change |
|---|---|---|
| FY27 | 6.6% | Up 10 bps from the January projection |
| FY28 | 7.2% | Up 60 bps |
| FY29 | 7.0% | Not stated |
About the World Bank Group
- Multilateral lender giving loans, grants and technical help to developing countries; formed in 1944 at Bretton Woods; headquartered in Washington DC.
- President: Ajay Banga, in office since June 2023.
- Five institutions: IBRD (1944), IDA (1960), IFC (1956), MIGA (1988) and ICSID (1966). “World Bank” strictly means IBRD and IDA.
Key publications
- Global Economic Prospects: released in January and June each year, with global and country forecasts.
- World Development Report (annual, thematic); Doing Business Report (discontinued in 2021); Logistics Performance Index; Human Capital Index.
Exam angle
- Numbers: FY27 6.6%, FY28 7.2%, FY29 7.0%; global 2026 at 2.5%.
- GEP frequency: twice a year; World Bank HQ: Washington DC.