The World Bank has raised its forecast for India’s economic growth in financial year 2027 from 6.6 per cent to 7.1 per cent, reports ANI, a TV BRICS partner. According to the bank, growth is being supported by resilient domestic demand and exports.
“India is one of the top 10 leading emerging-market performers on AI readiness,” said Paul Procee, World Bank Acting Country Director for India.
The report notes that India’s medium-term growth prospects remain stable despite global challenges. The upgraded forecast keeps India among the fastest-growing major economies in the world.
The report also highlights artificial intelligence as a potential new source of productivity and growth. According to the bank, this will require policy measures that encourage wider adoption of AI. Private investment in AI in India more than tripled, from US$1.2 billion in 2024 to US$4.1 billion in 2025. Employment in global capability centres increased from 1.9 million professionals in 2024 to 2.36 million in 2025.
“Harnessing AI as a development tool – not just a technology – could be one of the most powerful levers India has to boost productivity and improve public services,” Procee said.
Economic growth in South Asia is forecast at 6.9 per cent in 2026, with the region retaining its position as the fastest-growing in the world.