World Bank raises India FY27 growth forecast to 7.1%, flags oil, El Niño risks
The World Bank has upgraded India's economic growth forecast to 7.1% for fiscal 2026-27. This change reflects strong domestic consumption, despite ongoing inflationary pressures. Other major forecasters, including Moody's and S&P Global Ratings, have also revised their projections upward. However, elevated oil prices and potential climate-related challenges pose risks to this outlook. The World…
The World Bank has upgraded India's economic growth forecast for fiscal 2026-27, projecting a 7.1% growth rate, up from the previous 6.6% forecast. The bank attributes the improvement to resilient domestic consumption, which has helped absorb the impact of higher energy prices despite persistent inflation. India's growth outlook for South Asia is also raised to 6.9%, 60 basis points above the previous estimate.
The bank cautions that oil price volatility, a severe weather shock, and a correction in global financial markets could pose risks to the outlook. India's economy is expected to grow 7.8% in the April-June quarter, but the World Bank warns that elevated oil prices, a weather event, and market corrections could put pressure on the growth outlook.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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