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 indicators and sectoral expansion: a key GS3 data point for Indian economy analysis.
Why in news
The World Bank upgraded India's FY27 GDP growth forecast to 7.1 per cent from 6.6 per cent in its latest India Development Update.
Background
India's GDP growth reached 7.8 per cent in FY26 from 7.2 per cent in FY25. In Q1 of FY27, GDP grew by 7.8 per cent, with infrastructure goods growing at 7.2 per cent and electricity expanding by 9.3 per cent.
Facts for Prelims
- FactWorld Bank FY27 GDP growth forecast for India: 7.1 per cent
- FactIndia's FY26 GDP growth: 7.8 per cent
- FactQ1 FY27 infrastructure goods growth: 7.2 per cent
- FactQ1 FY27 electricity expansion: 9.3 per cent
Prelims practice question
With reference to India's GDP growth data, consider the following statements:
- In Q1 of FY27, electricity expanded by 8.3 per cent.
- The World Bank upgraded India's FY27 GDP growth forecast to 7.1 per cent.
- India's GDP growth reached 7.8 per cent in FY26.
Which of the statements given above is/are correct?
- (a)2 only
- (b)3 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: The note states electricity expanded by 9.3 per cent.
For Mains
Q. Analyze the factors driving India's sustained GDP growth despite global trade tensions and monsoon deficits.
Dimensions to cover in your answer
- Consumption dynamics: Rural income support and food subsidies balancing urban demand shifts
- Supply-side resilience: Industrial activity and infrastructure growth offsetting agricultural outlook weaknesses
- Investment environment: Impact of front-loading and policy-driven credit availability on private investment
Keywords: GDP growth · private consumption · infrastructure investment · monsoon deficit · fiscal policy · industrial activity
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