The World Bank has raised its forecast for India’s GDP growth in the current financial year to 7.1 per cent, up from 6.6 per cent projected in April. The revision follows stronger-than-expected growth, with the economy expanding 7.8 per cent in the first quarter of FY27, supported by robust private consumption and investment.
The World Bank said private consumption is likely to remain the main growth driver, while stronger public investment and supportive financial and policy conditions will provide further support. Exports have also performed better than expected and are projected to offer a key upside to the growth outlook, although global trade and geopolitical uncertainties may weigh on private investment.
On the supply side, industrial activity has exceeded expectations, with infrastructure and construction goods and electricity generation recording strong growth. However, a rainfall deficit during the southwest monsoon has weakened agricultural prospects and may moderately affect rural demand. The services sector, meanwhile, continues to register elevated growth despite moderating from last year’s high base.
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