India Remains Resilient to Energy Shocks; Growth Seen Rebounding Above 7% by FY29: World Bank
World Bank FY27 Forecast
Growth in India is projected at 6.6% in FY27, as higher energy prices from the Middle East conflict and supply chain disruptions weigh on economic activity, World Bank said on April 9.
FY26 Growth Stronger Than Expected
India's economy grew an estimated 7.6% in FY26, higher than earlier projections, reflecting the strength of consumption and investment activity, according to the World Bank's South Asia Update.
Strong Buffers Provide Resilience
Substantial foreign reserves, low inflation, predominantly rupee-denominated public debt, a healthy financial sector, and trade diversification efforts play a major role in providing resilience from external headwinds.
Energy Prices a Key Risk
Elevated global energy prices are expected to put upward pressure on prices and constrain households' disposable income. Government consumption growth is expected to soften to offset higher subsidy outlays for cooking fuel and fertilisers.