World Bank sees India's growth cooling a bit by FY27

Business Jan 13, 2026

The World Bank just shared that India's GDP growth is expected to dip to 6.6% in FY27, down from a strong 7.2% in the current fiscal year.
Even with global hurdles like higher US tariffs, India's economy is holding up well thanks to solid domestic demand—helped by past tax reforms and better rural incomes.

What's driving these numbers?

The growth estimate for this year got bumped up after a surprisingly good first half.
For FY2025-26, the World Bank expects India to keep growing at 7.2%, powered by people spending more.
While there's a slight slowdown predicted for FY27, things still look positive as exports and investments are set to pick up again.