World Bank raises India’s FY 2026-27 growth forecast to 6.6% on strong domestic demand
- IBEF
- April 10, 2026
India's growth rate prediction has been revised upwards to 6.6% from 6.3% due to high domestic demand, stable exports, and the beneficial impact of FTAs with the UK and EU progress, according to the most recent forecast issued by the World Bank. According to the regional outlook statement, India is set to be the driving force behind growth in South Asia, owing to strong household consumption, reduced tariffs, and stronger global trade integration with countries like the UK and the European Union. The economy is predicted to grow at a rate of 7.1% in the fiscal year 2024-25, which has increased to 7.6% in 2025-26.
The new projection builds confidence in India’s medium term economic outlook, particularly as trade pacts start boosting exports and manufacturing growth. The World Bank further observed that reduced GST levels should aid in driving domestic consumption in the first half of fiscal year 2026-27, while high global energy costs may exert some downward pressure on disposable incomes. The updated projection also helps to reinforce the position of India as an attractive destination for investments in manufacturing, digital services, and infrastructure, with export prospects improving for manufacturers enjoying the benefits of reduced tariffs.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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