New Delhi

TheWorld Bank on Thursday said India is well placed to weather the ongoing global energy shock, supported by strong macroeconomic buffers such as high foreign exchange reserves, fiscal space and low inflation.

Addressing a conference a day after raising India’s GDP growth projection for FY27 to 6.6 per cent, World Bank officials said the country entered the current Middle East-driven oil market volatility from a position of strength. India had already demonstrated resilience in the face of global trade turbulence in the previous fiscal. World Bank Regional Practice Director for South Asia, Sebastian Eckardt, highlighted that India’s strong policy buffers and growth momentum provide room for policy support if required. He noted that structural reforms, including trade agreements and labour initiatives, are reinforcing the country’s growth trajectory.

According to the World Bank’s latest South Asia Economic Update, India’s growth is estimated to have accelerated from 7.1 per cent in FY25 to 7.6 per cent in FY26, driven by robust domestic demand and resilient exports. Growth is projected to moderate to 6.6 per cent in FY27, slightly higher than earlier estimates.

World Bank Lead Economist for India, Aurelien Kruse, said India remained the fastest-growing large economy in FY26 despite facing high global tariffs. He credited income tax cuts and GST rate reductions for supporting consumption, while exports and investment performed better than expected.

The report described the current scenario as a “major trade shock” with risks tilted to the downside, particularly due to oil price volatility. The World Bank assumes crude oil prices at USD 90–100 per barrel for FY27.

It also commended the government’s handling of the energy crisis, noting that authorities balanced supply management with price stability, avoiding extreme measures such as rationing while cushioning consumers from sharp price spikes.