Washington, Apr 9 (BNP): The World Bank has revised India’s economic outlook, projecting GDP growth of 7.6% for FY26 while raising its forecast for FY27 to 6.6%. The updated estimate marks an improvement from its earlier projection of 6.3% made in October.

Despite the upward revision, the global lender expects growth to moderate in FY27 compared to FY26. This anticipated slowdown is attributed in part to external uncertainties, including the ongoing tensions in West Asia, which could weigh on global economic conditions.

 Pic Credit: Pexel

The report also highlights potential inflationary pressures. Strong domestic demand, along with stabilizing food prices and rising energy costs, may push inflation higher in the coming months.

India’s growth continues to be supported by resilient consumption and steady economic activity. However, the World Bank cautions that managing inflation and navigating global risks will be crucial to sustaining momentum.

Overall, while India remains one of the fastest-growing major economies, the outlook suggests a balance between strong fundamentals and emerging challenges in the year ahead.