The World Bank has revised India's growth forecast for the financial year 2026-27 (FY27) to 6.6%, a decline from the estimated 7.6% for the previous year, primarily due to disruptions caused by the ongoing conflict in West Asia. This projection is lower than the Reserve Bank of India's estimate of 6.9% and the government's earlier forecast of 6.8-7.2%. The World Bank attributes the slowdown to rising global energy prices, which are expected to fuel inflation and reduce disposable incomes for households. Despite these challenges, strong domestic demand, supported by recent tax reforms including reductions in the Goods and Services Tax (GST), continues to bolster consumption. Analysts highlight that every $10/barrel increase in oil prices could reduce GDP growth by 30-40 basis points. The World Bank also noted that India's underlying economic dynamics remain strong, with robust private consumption and infrastructure investments providing structural support. However, the growth outlook for South Asia as a whole is expected to slow to 6.3% in 2026 before recovering to 6.9% in 2027. The World Bank stresses the importance of implementing critical policy reforms to sustain growth and improve resilience to external shocks.