NEW DELHI — The World Bank said on Tuesday it expects India’s gross domestic product to expand by 4.6% in the fiscal year 2027, up from its prior estimate of 4.4%, as growth‑stimulating reforms and robust consumption begin to bear fruit.
The revision came in the Bank’s latest Global Economic Prospects report, which highlighted that India’s slowdown in 2023‑24 was largely transitory and that the country is now poised to outpace many peers in the next two years.
“The Indian economy is showing resilience despite headwinds from global tightening and supply‑chain disruptions,” the report noted. “Policy measures aimed at boosting private investment and improving fiscal health are starting to translate into higher output.”
Analysts at several Indian banks corroborated the outlook, saying the forecast reflects a combination of factors: continued fiscal consolidation, progress on the Goods and Services Tax (GST) rationalisation, and a rebound in private sector credit growth.
“A 4.6% growth path is realistic if the government maintains its reform agenda and if external financing conditions remain favourable,” said one senior economist who asked to remain unnamed.
Officials from the Ministry of Finance declined to comment directly on the World Bank’s figures but previously indicated confidence that the economy would return to a 5% expansion trajectory by 2026‑27.
Today’s projection adds to a series of upward revisions from major institutions, including the International Monetary Fund, which recently lifted its own estimate for India to 5% for FY26‑27.
Looking ahead, the World Bank cautioned that the outlook remains vulnerable to global shocks such as persistent inflation, geopolitical tensions, and a possible slowdown in export demand. Nonetheless, it expects India to solidify its position as a leading growth engine in Asia, drawing further foreign investment and supporting the government’s ambition to become a $5‑trillion economy by the end of the decade.