World Bank Lifts India’s FY27 Growth Forecast to 6.5%
Why in the news
The World Bank revised its outlook for India’s economy upwards for FY27, pointing to firm domestic demand and exports that held up despite tariff pressure.
Key facts
- New FY27 forecast: 6.5%.
- Earlier projection: 6.3% made in October 2025.
- Ranking: India expected to stay the fastest-growing major economy.
- FY28 projection: 6.6%.
Forecast comparison
| Year or release | Growth forecast |
|---|---|
| FY27, October 2025 estimate | 6.3% |
| FY27, revised estimate | 6.5% |
| FY28 | 6.6% |
Drivers of the upgrade
- Domestic demand: consumption and investment stronger than expected, with better business and consumer confidence.
- Exports: resilient even with higher U.S. tariffs on some Indian goods; the U.S. takes about 12% of merchandise exports.
- A surplus in services trade cushions the merchandise trade deficit.
Medium-term outlook
- FY28 growth rests on a robust services sector, export recovery and a pickup in investment.
Exam angle
- Agency: World Bank; new FY27 figure 6.5%.
- U.S. share of India’s merchandise exports: about 12%.