India GDP May Grow 6.8% In FY27
India’s economy is expected to grow between 6.6% and 6.8% in FY27, supported by resilient domestic demand, easing global energy prices and improving supply conditions, according to EY Economy Watch. The outlook suggests India could remain among the faster-growing major economies despite external risks.
India GDP Growth Forecast FY27
EY has projected India’s real GDP growth in the range of 6.6% to 6.8% for FY27. The forecast is based on continued strength in domestic consumption, infrastructure spending and broader macroeconomic stability.
The report said India’s growth momentum could improve if crude oil prices remain at relatively lower levels and shipping through the Strait of Hormuz normalises. Lower energy costs are expected to support both economic activity and inflation management.
Domestic Demand Supports Economy
Resilient domestic demand remains a key driver of India’s economic outlook. Strong consumption, public capital expenditure and investment activity are expected to help offset some pressure from global uncertainty.
India’s infrastructure push is also likely to support growth in construction, manufacturing, logistics and related sectors. The economy is expected to benefit from stable demand conditions even as global trade and geopolitical risks remain areas of concern.
Inflation And Current Account Outlook
EY expects CPI inflation to remain around 4.5% in FY27, while nominal GDP growth is projected at 12.5%. The government’s fiscal deficit is expected to be around 4.4% of GDP, while the current account deficit may remain manageable at about 1.5% of GDP.
The report suggests that lower crude oil prices could reduce pressure on inflation, imports and the external balance. However, risks from global energy markets, geopolitical tensions and trade disruptions will remain important factors to watch.
