India to remain among fastest-growing economies in FY27 despite the West Asia war: World Bank
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India is expected to remain one of the world's fastest-growing major economies in 2026-27, despite the impact of the West Asia war, according to the World Bank. The country's strong macroeconomic fundamentals and robust buffers, including adequate foreign exchange reserves and a well-capitalized banking system, will support its growth outlook.
India's economy is projected to grow at 6.6% in 2026-27, slower than the estimated 7.6% expansion in 2025-26. The World Bank attributes this moderation to global uncertainties, particularly the US-Israel and Iran war. Despite this, India's economic momentum remains strong, with strong buffers and policies supporting growth while maintaining fiscal consolidation. The country's exposure to global energy volatility is relatively contained, with net energy imports accounting for about 2.8% of GDP. The World Bank recommends implementing carefully designed policy measures to address specific market failures and improve the business environment.
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