India has ample buffers to weather headwinds: World Bk

The World Bank on Thursday said India is well placed to weather the current global energy shock with ample buffers, including high foreign exchange reserves, fiscal space and low inflation, which will support growth despite global headwinds.

Addressing a conference a day after raising India's GDP growth projections for the current fiscal to 6.6%, the World Bank said India had dealt well with the trade turbulence last fiscal and the Indian economy entered the current Middle East crisis from a position of strength. 

World Bank Regional Practice Director (Prosperity) for South Asia Sebastian Eckardt said, "India has strong policy buffers, high forex reserves and fiscal space to provide support as needed. That strong growth momentum is supported by positive policies, including the EU FTA and new labour laws. Despite global headwinds, we see India and the region continuing to be a very strong performing region compared to other emerging markets." 

World Bank Lead Economist for India Aurelien Kruse said India remained the fastest-growing large economy in the world in FY26, despite facing some of the highest tariffs on its exports globally. 

"India showed very strong performance and resilience," Kruse said.