Source: BS
Context:
The World Bank has upgraded India’s GDP growth forecast for FY27 to 6.5%, from 6.3% projected in October 2025, citing stronger domestic demand and resilient exports.
- Forecast unchanged compared to June 2025
- India expected to remain the fastest-growing major economy
Key Drivers Behind the Upgrade
1. Resilient Domestic Demand
- Consumption and investment momentum stronger than earlier expected
- Improved business and consumer confidence
2. Export Performance
- Exports more resilient despite:
- Higher U.S. tariffs on some Indian goods
- The U.S. accounts for ~12% of India’s merchandise exports
- Services trade surplus continues to cushion merchandise trade deficit
Medium-Term Outlook
- FY28 growth projected at 6.6%
- Supported by:
- Robust services sector
- Export recovery
- Pickup in investment
