The World Bank has projected India’s GDP growth at 6.6% for FY 2026-27, highlighting resilient domestic demand while expecting the country to remain the world’s fastest-growing major economy.

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• The World Bank’s latest Global Economic Prospects report estimates India’s GDP growth at 6.6% for FY 2026-27 following an estimated 7.7% expansion in FY 2025-26.
• India is expected to retain its position as the fastest-growing major economy, supported by strong domestic demand and continued economic resilience.
• The report projects GDP growth to improve to 7.2% in FY 2027-28 before moderating slightly to 7.0% in FY 2028-29.
• Higher energy prices and rising production costs are identified as key factors that could moderate economic expansion by affecting private consumption and business activity.
• Rural consumption and recovering urban demand have continued to support economic activity, with household spending remaining a major contributor to GDP growth.
• The World Bank lowered its global growth forecast for 2026 to 2.5%, citing geopolitical tensions, elevated energy prices, and weaker international economic conditions.
• Policy measures such as lower fuel taxes and reduced Goods and Services Tax rates are expected to help ease inflationary pressures and sustain consumer demand.
• The report underscores India’s strong macroeconomic fundamentals and its ability to maintain steady growth despite uncertainties in the global economy.