India GDP Growth

The International Monetary Fund (IMF) in its World Economic Outlook for April 2026 noted India's nominal GDP at USD 3.92 trillion for 2025-26, which makes India the sixth-largest economy in the world, Parliament was informed on Tuesday. "The IMF's rankings are based on nominal GDP measured at prevailing US Dollar exchange rates. Consequently, the relative ranking of economies can change due to a combination of factors, including economic growth, movements in exchange rates and prices, revisions to national accounts and changes in the size and growth of other major economies," Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha. The government has adopted a broad-based strategy to enhance the growth potential of the Indian economy, he said. The strategy focuses on enhancing agricultural productivity, promoting manufacturing through initiatives such as the Production-Linked Incentive Schemes and relaxing Quality Control Orders, strengthening MSMEs

Fitch Group company BMI on Tuesday projected India's growth to slow to 6.6 per cent in the current fiscal as the boost to the economy from last year's GST reforms wanes and elevated inflation erodes household income. The Indian economy grew 7.7 per cent in financial year 2025-26. India remains Asia-Pacific's fastest-growing large economy, but the risks lie to the downside, mainly from a re-escalation in the Middle East or a weaker monsoon, BMI said. It said India's growth will slow in FY27 as the fiscal boost from GST reforms fades and inflation remains elevated, averaging 5.4 per cent. "We expect growth to moderate from 7.7 per cent in FY2025/26 (April-March) to 6.6 per cent in FY2026/27, as the lift from last year's Goods and Services Tax reforms wears off while elevated inflation erodes household incomes," BMI said. As part of the GST reforms rolled out in September last year, tax rates on 375 items were cut and GST was rationalised from a 4-tier structure to virtually 2 slabs

We broadly concur with the MPC's growth forecasts for FY2027, notwithstanding some differences in the quarterly projections, Nayar said.

India can unlock 8-9 per cent economic growth by accelerating structural reforms to reduce the cost of doing business and the cost of financing, former Chief Economic Adviser Krishnamurthy V Subramanian said on Monday. He called for implementing factor market reforms in land, labour, and capital, as well as judicial and bureaucratic reforms. "Macroeconomic stability got India to 7 per cent growth. Institutional reforms can take India to 9 per cent," Subramanian said told PTI in an interview. "India achieved above-8 per cent growth when private investment as a share of GDP was more than 30 per cent. We are currently at around 22-23 per cent, 7-8 per cent short of the target," he said. "We will then leapfrog from 7 to 9 per cent growth!" Subramanian said, adding that the public capital expenditure of the last five years has laid the infrastructure that private investment follows, and the banking system with gross NPAs near multi-decade lows is ready to support it. Subramanian, who .

Deloitte India on Sunday projected India's economy to grow at 6.5-6.8 per cent in the current fiscal, with growth expected to strengthen in the second half of the year supported by festive demand, monetary easing, and a gradual stabilisation in global conditions. In its latest edition of Economic Outlook report, Deloitte said India entered 2026 in a Goldilocks phase, with macroeconomic fundamentals appearing unusually well balanced, but geopolitical developments altered the global landscape with tensions in the Middle East disrupting critical shipping routes, triggering volatility in commodity prices and weakening investor sentiment. This resulted in a wider trade deficit, sustained capital outflows, and a sharp depreciation of the rupee against the US dollar within a matter of weeks. Against this backdrop, the RBI had last month lowered India's GDP growth estimates for current fiscal to 6.6 per cent, from 6.9 per cent estimated earlier. GDP grew 7.7 per cent in the previous (2025-2

Human capital - not geography, culture or natural resources - now explains why some nations become wealthy while others remain stagnant

Sri Lanka has re-entered the World Bank's upper-middle-income group while India remains lower-middle income because the rankings are based on per capita income, not the size of the economy

For India, BofA Securities has raised the 2026 GDP (gross domestic product) forecast to 7 per cent from the 6.2 per cent forecasted in April. For 2027, it now pegs the GDP growth at 7 per cent.

India's economy is expected to grow at 6.6-6.8 per cent in the current fiscal, and a gradual normalisation of global energy markets is expected to ease supply-side pressures, improve cost conditions, and support growth and inflation outcomes during FY27, EY Economy Watch said on Friday. Considering the recent geopolitical developments, if global crude prices settle at relatively lower levels and shipments through the Strait of Hormuz normalise, the positive momentum of India's growth prospects is likely to be restored, the report said. "We expect, in FY27, real GDP growth at 6.6-6.8 per cent, CPI inflation at 4.5 per cent, nominal GDP growth at 12.5 per cent, Government of India fiscal deficit at 4.4 per cent and current account deficit at 1.5 per cent of GDP," EY Economy Watch said. It said India continues to demonstrate strong economic resilience despite external uncertainties, underpinned by robust domestic economic fundamentals and sustained private sector activity. A gradual .

The brokerage raised India's GDP forecast, while cutting its inflation estimate to 4.4% and current account deficit forecast to 1.1% of GDP, on falling crude oil prices after the US-Iran peace deal

S&P Global Ratings on Wednesday said energy stress, sub-par monsoon and slowing global growth will pull down India's GDP growth to 6.6 per cent in the current fiscal. The Indian economy recorded 7.7 per cent growth in the 2025-26 fiscal and 7.1 per cent in 2024-25. "We project real GDP growth will slow to 6.6 per cent in the fiscal year ending in March 2027, compared with 7.7 per cent in fiscal 2026, amid the energy stress, expectations of a sub-par monsoon, and slowing global growth," S&P said in its report. S&P's FY27 growth projection is in line with the RBI estimate of 6.6 per cent. The impact of El Nino has weakened monsoon rains, with the rainfall deficit widening to 43 per cent by June 22. To deal with deficient monsoon, the government has drawn up state-wise contingency plans recommending alternative crops suited to deficient rainfall conditions. India imports 88 per cent of its crude oil needs, and a rise in global prices increases its import bill and stokes ...

The multilateral lender cited resilient domestic demand and stronger export prospects, while warning that higher energy prices could strain government finances

India's GDP is likely to grow at 6.6 per cent in the current fiscal as compared to 7.7 per cent in FY26, on weaker investments and consumption growth and trade shocks from the West Asia crisis, BMI, a Fitch group company, said. According to government data released last week, GDP growth in FY26 accelerated to 7.7 per cent from 7.1 per cent in FY25, supported by healthy consumption and robust investment activity. BMI expects the rupee to trade in the range of 95.1 against the US dollar this calender year. It said the rupee's depreciation from its 87 average level in 2025 will support export competitiveness, offsetting the drag on GDP from the Iran conflict's terms-of-trade shock. The GST reforms implemented in September 2025 caused a consumption boom in December quarter FY26. Thereafter, consumption growth fell by 1.1 percentage points to 7.1 per cent y-o-y in March quarter FY26. "Looking ahead, we continue to expect 6.6 per cent GDP growth in FY2026/27. Our projection represents a

The Indian economy is facing headwinds from external sectors with rising fuel and fertiliser import bills due to West Asia crisis, but GDP growth momentum remains intact with domestic consumption holding up, government sources said on Tuesday. Sources said the FY27 Budget had taken into cognisance the uncertainties in the global economy around tariffs, and the government do not immediately need to account for additional borrowing or bring in supplementary demands for grants in the upcoming monsoon session of Parliament. On the fiscal deficit front, sources said the budgeted target of 4.3 per cent of GDP is still intact, and the government is actively tapping its non-tax revenue areas like disinvestment and asset monetisation in the current fiscal. "DIPAM and DPE have a year-long pipeline and also a medium-term outlook of disinvestment and asset monetisation. I would hope the budgeted Rs 80,000 crore under this head exceeds BE and both the departments are working on it," a source sai

Fitch Ratings on Tuesday lowered its GDP growth projections for the current fiscal to 6.4 per cent from the earlier estimate of 6.7 per cent, saying that the US-Iran war will slow down the economy in the September and December quarters. Fitch said it expects a slowdown in economic growth in FY27 from the 7.4 per cent clocked in FY26 as rising prices erode real incomes and dampen consumer spending, amid a resilient capital expenditure. "We expect GDP growth to ease to 6.4 per cent in FY27, a downward revision of 0.3pp from March. Domestic demand will be the main driver of growth, but lower imports in real terms imply positive contributions to growth from net external demand," Fitch Ratings said in its June Global Economic Outlook. Last week, the RBI had cut its growth forecast for the current fiscal to 6.6 per cent and upped its inflation projection to 5.1 per cent. The rating agency said the slowdown in the economy will be most apparent in the second and third quarter of FY27, as

India's GDP growth is expected to slow to 6.5% in FY27 as oil prices, geopolitical tensions and weak monsoon prospects weigh on economic activity

Full-year GDP growth pegged at 7.7%

RBI has unveiled a five-pronged plan to attract foreign capital, boost dollar inflows, ease banking liquidity pressures and support the rupee

West Asia crisis may weigh on FY27 outlook, says Nageswaran

India's GDP rose to ₹346.36 trillion in FY26, but rupee depreciation against the US dollar kept the country behind the UK and Japan in global economic rankings