World Bank raises India's FY27 GDP growth forecast to 7.1 per cent
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims·
Economic growth drivers and international projections: a key GS3 topic for Indian economy analysis.
Why in news
The World Bank raised India's FY27 GDP growth forecast to 7.1 per cent from 6.6 per cent due to robust domestic demand and strong exports.
Background
The World Bank upgraded India's FY27 growth forecast from 6.6% to 7.1% in its latest India Development Update. India's FY26 GDP grew by 7.8%, driven by strong investment and private consumption, while the Asian Development Bank, OECD, S&P, and Fitch also raised projections to around 7%.
Facts for Prelims
- FactWorld Bank FY27 GDP growth forecast for India: 7.1 per cent
- FactIndia's FY26 GDP growth rate: 7.8 per cent
- FactFY25 GDP growth rate: 7.2 per cent
- FactGrowth drivers: Strong investment, private consumption, and robust domestic demand
- BodyWorld Bank, Asian Development Bank, OECD, S&P, and Fitch all raised India's growth projections
Prelims practice question
With reference to India's GDP growth projections, consider the following statements:
- India's GDP growth rate for FY26 was recorded at 7.2 per cent.
- Robust domestic demand and strong exports are key drivers of the growth forecast.
- The World Bank raised India's FY27 GDP growth forecast to 7.1 per cent.
Which of the statements given above is/are correct?
- (a)1 only
- (b)2 only
- (c)1 and 3 only
- (d)2 and 3 only
Show answer
Answer: (d) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: India's FY26 GDP growth rate was 7.8 per cent.
For Mains
Q. Analyze the factors contributing to India's resilient GDP growth despite global geopolitical uncertainties and external risks.
Dimensions to cover in your answer
- Domestic demand resilience: Strong private consumption and rural demand supported by agricultural performance
- External risk exposure: Vulnerability to global oil prices, El Nino, and capital flow volatility
- Policy-driven momentum: Impact of income-tax relief and GST cuts on urban consumption
Keywords: GDP Growth · Domestic Demand · Private Consumption · External Risks · Investment Outlook · Fiscal Policy
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