India is expected to remain among the world’s fastest-growing major economies in 2026-27 despite headwinds from the West Asia war, supported by strong macroeconomic fundamentals, said Aurelien Kruse, lead economist for India at the World Bank on Thursday.
The country has built robust buffers, including adequate foreign exchange reserves, a predominantly domestically held public debt profile, a well-capitalized banking system, low inflation and a relatively low dependence on net energy imports as a share of gross domestic product (GDP), the senior World Bank economist said.
However, risks remain tilted to the downside. An extended period of geopolitical instability could keep global oil prices elevated for longer, potentially weighing on India’s growth outlook.
“While India’s strong macroeconomic buffers offer some protection against downside risks, the conflict underscores the…
