India’s FY27 GDP Growth Projected at 6.6–6.8% As Energy Markets Normalise: EY Report
Lower energy prices and strong domestic demand to support growth and inflation.
New Delhi: India's economy is projected 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.
According to the report, with 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.
“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 said, adding that India continues to demonstrate strong economic resilience despite external uncertainties, underpinned by robust domestic economic fundamentals and sustained private sector activity.
The report further said that gradual normalisation of global energy markets is expected to ease supply-side pressures, improve cost conditions, and support both growth and inflation outcomes during FY27. “Inflation is expected to remain broadly manageable at around 4.5 per cent, supported by moderating commodity prices and improving supply conditions,” it said.
“India's medium-term growth prospects remain supported by strong domestic drivers, with domestic consumption, investment, and services sector performance continuing to play a central role in economic expansion,” the report added.
