The World Bank has increased India's economic growth forecast for FY27 to 6.6%, up from 6.5% projected earlier, despite lowering its global growth outlook due to the ongoing West Asia conflict. According to its June 2026 Global Economic Prospects report, India's economy is expected to grow 6.6% in FY27, after an estimated 7.7% growth in FY26, and further accelerate to 7.2% in FY28.
The report noted that India remains one of the world's fastest-growing major economies, driven by strong domestic demand and resilient economic activity. However, the World Bank warned that rising crude oil prices, triggered by the West Asia war, could increase inflation and import costs. Global growth is expected to slow to 2.5% in 2026, while India's growth outlook remains significantly stronger than many major economies, including China.
