World Bank raises India's FY27 growth forecast to 7.1%, flags oil and climate risks

The World Bank has raised its economic growth forecast for India to 7.1% for fiscal 2026-27, citing robust domestic consumption as a key driver despite persistent inflationary pressures. Major rating agencies including Moody's and S&P Global Ratings have similarly revised their growth projections upward for the period.

However, the World Bank has cautioned that elevated global oil prices and potential climate-related disruptions pose significant risks to this outlook. The multilateral institution has also stressed the importance of accelerated adoption of artificial intelligence across the region to sustain long-term economic growth.