The World Bank has raised India’s growth forecast from 6.3 percent to 6.6 percent for the current financial year, owing to strong domestic demand and free trade agreements.
In its latest report, World Bank expects India to remain the primary engine of growth in South Asia.
The report also noted that, although the reduction in GST rates should continue to support consumer demand in the first half of FY27, elevated global energy prices are expected to put upward pressure on prices and constrain households’ disposable income.
The World Bank Group, in its twice-a-year regional outlook report, stated that the growth outlook is driven primarily by India’s performance, underpinned by robust domestic demand as well as tariff cuts and recent trade agreements.
