India well-positioned to weather global energy shock: World Bank

New Delhi: The World 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 al-ready demonstrated resilience in the face of global trade turbulence in the previ-ous fiscal.

World Bank Regional Practice Director for South Asia, Sebastian Eckardt, high-lighted 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 pro-jected 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.