The Indian economy is likely to remain on a steady growth path in FY27, with real GDP projected to expand by 6.8 per cent, moderating from an estimated 7.3 per cent growth in FY26, according to a report by Goldman Sachs.
The global investment bank expects private consumption to strengthen further in FY27. However, it cautioned that a broad-based private capital expenditure cycle may take time to materialise, with trade-related uncertainty and high US tariffs acting as near-term constraints.
On the policy front, Goldman Sachs said inflation is expected to hover close to the Reserve Bank of India’s (RBI) 4 per cent target. This would limit the scope for further rate cuts beyond a possible 25-basis-point easing, and that too only if growth-related risks intensify.
Separately, India Ratings & Research (Ind-Ra) has also projected the Indian economy to grow at 6.9 per cent in the 2026–27 financial year. The agency said key reforms such as the Goods and Services Tax (GST), income tax cuts and trade agreements would act as economic catalysts and help shield the economy from global turbulence.
For the current financial year, Ind-Ra has projected real GDP growth at 7.4 per cent, while nominal GDP is expected to expand by 9 per cent.
Meanwhile, in its end-of-year economic review, the government said India has surpassed Japan to become the world’s fourth-largest economy. The review noted that India’s gross domestic product has reached approximately $4.18 trillion and is projected to grow to $7.3 trillion by 2030.