India To Grow by 7.1 Percent in FY27

India’s economy is projected to grow at 7.1% in FY27 supported by robust domestic demand and strong exports, despite global headwinds. 

According to the World Bank’s latest economic update, it remains one of the fastest-growing major economies in the world and a key contributor to global growth. 

The medium-term prospects are strong, but it also cautions that external risks are elevated, including downside risks related to global oil prices, el Nino, and stock



market corrections that would result in capital flow volatility.

It finds that India is well positioned to harness AI, thanks to its large technical workforce, globally integrated IT sector, and digital public infrastructure. Private AI investment had a three-fold increase from $1.2 billion in 2024 to $4.1 billion in 2025. 

At the same time, Global Capability Centres employed 1.9 million professionals in 2024, which grew to 2.36 million professionals in 2025.