The World Bank has marginally raised India’s growth projections for 2026-27 fiscal to 6.6 per cent and said that although GST rate cuts would boost consumer demands in the initial months of the fiscal, headwinds arising from the Middle East crisis could dent growth.
The FY27 projection compares with estimates of 6.9 per cent by the RBI, 6.1 per cent by the OECD, and 6 per cent by Moody’s Ratings.
In its South Asia Economic Update report released on Wednesday, the World Bank said India’s growth is estimated to have accelerated from 7.1 per cent in FY25 to 7.6 per cent in FY26 (April 2025-March 2026), owing to strong domestic demand and export resilience.