Economic activity rose to a 32-month high in June, but Icra expects GDP growth to moderate from 7.8 per cent in Q4 FY26 amid pressure on margins in key sectors
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
The Asian Development Bank lowered India's FY27 growth forecast to 6.6 per cent, citing higher energy prices amid West Asia tensions, while retaining its FY28 projection at 7.3 per cent
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.
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 ...
India ships in about 90 per cent of its oil and is one of the countries most-exposed to prolonged Iran war-related disruptions to global energy supplies
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
RBI's policy hold and India's stronger-than-expected GDP growth anchored a week marked by firm PMIs, fuel-price risks, trade talks and fresh Cabinet approvals
Investment demand strengthened in FY26 as capital formation accelerated, while consumption remained resilient and government spending growth moderated
Strong services and manufacturing growth supported India's FY26 performance, but challenges around employment, inequality and regional disparities continue to weigh
Stable corporate borrowing costs allow companies, especially those in debt-heavy sectors like infrastructure and manufacturing, said Rajkumar Singhal
The classical conundrum faced by RBI as it navigates through a complex set of variables appears to be of managing the currency, economic growth, and inflation, said Killol Pandya
Looking ahead, investors will continue to track crude oil prices, inflation trends, monsoon developments, and geopolitical events, said Somil Mehta of Mirae Asset Sharekhan
A World Inequality Lab study suggests India could surpass China in share of global GDP in PPP terms by around 2060 under a convergence scenario
Longer and more intense heatwaves are affecting jobs, farm output, electricity demand and health costs, raising concerns that India may be underestimating their economic impact
The United Nations has revised downward India's economic growth forecast for 2026 to 6.4 per cent from its earlier projection of 6.6 per cent, citing global uncertainties and economic shocks arising from the ongoing West Asia crisis. As per the report released by the UN Department of Economic and Social Affairs (UN DESA) on Tuesday, India, however, remains one of the fastest-growing major economies. West Asia crisis has delivered yet another shock to the global economy, slowing growth, reigniting inflationary pressures and heightening uncertainty, it said. Ingo Pitterle, Senior Economist and Officer-in-charge of Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN DESA, said India is "not immune" to current global challenges. "It is a large energy importer and it is also exposed to other channels, for example, remittances, add to some vulnerability. Also, a global financial tightening will make monetary policy more complicated," he added. Pitterle pointed o
The ministry said the change was necessitated because some "critical datasets become available only after a lag of up to two months"
India's economic growth is likely to decelerate to 6.7 per cent in the current fiscal, from 7.7 per cent in 2025-26, with the GDP expansion expected to slow significantly due to waning momentum and oil price shock from Iran war, BMI said on Monday. BMI, a Fitch Group firm, also said that the prospect of the Iran-US conflict escalating in scope presents downside risk to its growth outlook and India must balance spending needs on defence and fuel price stabilisation against fiscal consolidation agenda. The tax reforms in GST and income tax carried out in 2025 will partly offset effects of cost-push inflation, BMI said, adding looser monetary policy will support capital spending, as increased uncertainty amid the war and higher input prices hurt investment. BMI estimates that India's economy grew 8 per cent y-o-y in the January-March quarter of 2026, faster than its original 7.8 per cent projection. It has revised its growth forecast for 2025-26 upwards by 0.1 percentage points to 7.7
India's GDP growth may slip to around 6 per cent and retail inflation could rise to RBI's upper tolerance band of 6 per cent in the current fiscal, if the Indian crude basket price averages USD 120 a barrel, EY India said on Wednesday. EY India Chief Policy Advisor DK Srivastava said, although room for policy interventions is limited, policymakers need to consider upward revision in the repo rate and accelerated diversification of sources of crude supply as the price of the Indian crude basket (ICB) may rise further if the West Asian crisis persists. "If the ICB price averages USD 120 per barrel in FY27, India's real GDP growth may slip to about 6 per cent and CPI inflation may increase to 6 per cent... To minimise the adverse impact on fiscal deficit, increased energy prices should be passed on to the retailers to a relatively larger extent," Srivastava said. The April 2026 release of the US Energy Information Administration EIA Short-Term Energy Outlook projects Brent crude oil ..