New Delhi, Sep 7: India is expected to maintain economic growth of more than 7 per cent in the financial year 2026-27, with investment and exports likely to play a bigger role in supporting the economy, according to a recent assessment.
The outlook comes as the Indian economy has started FY27 on a strong footing. Real GDP grew 7.8 per cent in the April-June quarter, while investment activity and exports recorded healthy growth during the period.
Investment is emerging as one of the key drivers of the economy. Higher spending on infrastructure, manufacturing capacity and business expansion could encourage companies to increase production and make fresh investments in the coming months.
Exports are also expected to contribute more to growth as Indian businesses expand their presence in international markets. Stronger manufacturing capabilities and efforts to improve India’s competitiveness could provide additional support to export activity.
Domestic demand remains an important pillar of the economy. Consumer spending, services activity and construction have continued to support overall economic momentum, helping offset some of the uncertainty in global markets.
The strong first-quarter performance has also improved expectations for the rest of the financial year. However, the pace of growth will depend on several factors, including global demand, energy prices, geopolitical developments and financial conditions.
A sustained investment cycle could have a wider impact on the economy by creating jobs, increasing production and strengthening demand for goods and services. Greater private-sector participation in capital expenditure would be particularly important for maintaining the momentum.
The export sector could provide another source of support if global demand improves and Indian companies continue to diversify their markets and products. Higher exports would also help strengthen manufacturing and related supply chains.
Despite the positive outlook, external risks remain. Changes in global trade policies, geopolitical tensions and fluctuations in commodity prices could influence business confidence and investment decisions.
For now, the combination of strong domestic demand, rising investment and improving export activity provides a positive foundation for India’s growth in FY27. If these trends continue, the economy could remain on track for growth of more than 7 per cent during the year.