The World Bank has revised downwards India’s growth outlook for the current financial year 2026-27 to 6.6% from 7.2%, citing the impact of the war in West Asia on household and government consumption, as well as on industrial activity.

The India Development Update report by the World Bank said that “in the absence of the conflict”, India’s GDP growth was projected at 7.2%, a reflection of better-than-expected growth in 2025-26, “strong initial momentum” in the fourth quarter of that year as indicated by high-frequency data, and a “broad pro-growth reform agenda”.