India Expected To Expand 6.6% In FY27, Says World Bank, Raises Forecast Despite West Asia Crisis, Crude Rally

The World Bank has raised India's FY27 growth forecast to 6.6%. This is higher than the 6.5% projected in January. India remains one of the fastest-growing major nations. The economic outlook is positive despite a global slowdown.

Economic activity hit 7.7% in FY26 per government data. The economy will likely grow 6.6% in the current fiscal year. Growth should then bounce back to 7.2% in FY28. India remains a key engine for South Asian growth.

Global growth prospects have dimmed for this year. The World Bank lowered global forecasts to 2.5% for 2026. This marks the weakest pace since the pandemic. Advanced economies are expected to grow by only 1.5%.

Period Growth Forecast
FY26 (Estimated) 7.7%
FY27 (Projected) 6.6%
FY28 (Projected) 7.2%

The World Bank blames the West Asia war. Energy supplies face major disruptions. Commodity prices are expected to rise by 22%. Brent crude prices may average $94 per barrel. This is up 36% from 2025 levels.

Higher oil costs pose risks for India. The country is a large crude importer. This may increase import costs. It could add pressure on public finances and inflation. The report notes energy-dependent economies face weaker prospects.

India is growing faster than China. China is expected to expand 4.2% in 2026. Domestic demand in India remains resilient despite headwinds. The report warns of risks from further war escalation.

Madhavi Arora is chief economist at Emkay Global. She says the forecast aligns with current market estimates. It remains resilient despite global economic noise. Policymakers must balance inflation control with growth.