India well-positioned to tackle global energy crisis amid high reserves, low inflation: World Bank
India remained the fastest-growing large economy in the world in FY26, despite facing some of the highest tariffs on its exports globally
After raising India's GDP growth projections for FY27 to 6.6%, the World Bank has said that the country is well prepared to handle the current global energy crisis. It highlighted that India has strong protection measures like high foreign exchange reserves, enough fiscal space, and low inflation, which will help maintain growth even during global challenges. It also mentioned that India managed trade disruptions well last year and has entered the current Middle East crisis - which has caused fluctuations in oil prices - from a strong position.
World Bank Regional Practice Director, Prosperity, for South Asia, Sebastian Eckardt has said that India is in a strong position to handle current global challenges. The country has strong policy buffers, high foreign exchange reserves, fiscal space - to provide support as needed, low inflation, and strong economic momentum. The growth is backed by positive policies such as trade agreements (like the EU FTA) and new labour reforms. Even though there are global difficulties, India and the South Asia region are likely to continue performing better than many other emerging markets.
World Bank Lead Economist for India Aurelien Kruse has said India remained the fastest-growing large economy in the world in FY26, despite facing some of the highest tariffs on its exports globally. He said the income tax cuts and GST rate reductions last year supported domestic consumption, while exports and investment, areas which were expected to be adversely affected by tariffs, performed much better than anticipated. He highlighted that ‘India showed very strong performance and resilience’.

