The World Bank has revised upward its projection for India’s economic growth to 7.1% for the financial year ending in April 2027. The estimate was earlier placed at 6.6%, the report said.
According to the World Bank, India recorded growth in the first quarter even amid uncertainty in global trade and geopolitical developments. It attributed the improved outlook to strong investment, steady private consumption and a supportive policy environment.
The report noted that growth, which stood at 7.2% in FY2025, rose to 7.8% in FY2026. It linked the momentum to a combination of robust agricultural performance, rural income support, food subsidies and lower inflation.
In the early part of the year, rural consumption outpaced urban demand, the report said. Later, urban consumption strengthened following income tax relief and GST reductions, it added.
