World Bank raises India growth forecast to 7.1% for 2026-27
Business
Good news for India's economy: The World Bank just raised its growth forecast for 2026-27 to 7.1%, thanks to strong demand at home and solid gains in industry and services, even though agriculture is having a tougher time.
This update came out in the latest South Asia Economic Update.
India drives South Asia 6.9% growth
India's faster growth is set to power much of South Asia's economic rise, with the region expected to grow by 6.9% in 2026.
Behind this momentum are reforms like GST, tariff rationalization, and investment in physical and digital infrastructure.
But there's still work to do: only about 23.4% of Indian firms use AI (compared to nearly 42.7% in the U.S.), and closing this digital gap will depend on better infrastructure and education going forward.