Economic Outlook: India's Economy Forecast to Grow Between 6.8-7.2% in FY27

India's economy is expected to grow between 6.8-7.2% in FY27, driven by resilient domestic demand and strategic investment. The country's services sector is expected to continue driving growth, with manufacturing and infrastructure also contributing to the momentum. However, global uncertainties, trade tensions, and rising energy costs pose risks to the outlook 

The government's focus on promoting domestic manufacturing, improving infrastructure, and supporting startups is expected to support growth. India's demographic dividend, digital leadership, and industrial diversification are also expected to drive lasting development. With inflation expected to remain within the RBI's target range, the central bank is likely to maintain a supportive monetary policy stance.

The Economic Survey 2026 projects real GDP growth at 7.4% for FY26, with services sector driving growth. International bodies like the IMF, ADB, and World Bank have also revised India's growth forecast upwards, citing strong domestic demand and investment momentum.