The World Bank has upgraded India's gross domestic product (GDP) growth projection for FY2026-27 to 6.6%, an increase of 30 basis points from its October 2025 forecast. This revision is attributed to robust domestic activity, despite expectations of rising inflation driven by high energy prices. The growth rate is expected to decelerate from 7.6% in FY2026, influenced by headwinds such as the ongoing West Asia conflict, which has prompted many forecasters to adjust their projections to a range between 5.9% and 6.7%. The report indicates that while a reduction in Goods and Services Tax (GST) rates may support consumer demand initially, elevated global energy prices could constrain household disposable income. Furthermore, the government's fiscal deficit, which has been declining, is anticipated to stall or reverse due to increased subsidy outlays. The World Bank also noted that India’s free trade agreements (FTAs) with the European Union and the United Kingdom could enhance market access for domestic firms, despite potential impacts from slower growth in major trading partners. The report emphasizes that achieving developed country status by 2047 is feasible if India implements necessary structural reforms.