New Delhi, Oct. 6 -- India's economy is proving more resilient to external shocks than previously expected, prompting the World Bank to raise its growth forecast for the country's fiscal year 2027 (FY27) to 7.1% from 6.6%.

The upgrade, in the World Bank's October India Development Update, reflects resilient domestic demand, stronger-than-expected industrial activity and robust exports, even as higher global oil prices, a possible El Niño-related rainfall deficit and volatile capital flows pose risks.

The 50-basis-point increase follows a marginal upgrade in June, when the World Bank raised its forecast for FY27 to 6.6% from 6.5% in January. It said India's solid macroeconomic buffers and proactive policy response have helped limit ...