India's Economic Growth Forecast Boosted: What to Expect for FY27?

Economic Growth Projections Revised Upwards

New Delhi: The Chief Economic Advisor, V Anantha Nageswaran, announced on Friday that the economic growth forecast for the upcoming fiscal year has been adjusted upwards by 20 basis points, now estimated at 7-7.4 percent, following the introduction of a new GDP series.

Earlier in January, the Economic Survey presented in Parliament had anticipated a growth rate between 6.8 and 7.2 percent for the fiscal year 2026-27.

The Ministry of Statistics and Programme Implementation (MoSPI) has unveiled a new series of annual and quarterly National Accounts Estimates, using 2022-23 as the base year, replacing the previous base year of 2011-12.

Nageswaran stated, "We are revising our GDP growth outlook for FY27 from the earlier range of 6.8 to 7.2 percent to a new range of 7 to 7.4 percent under the updated series. The economy is more likely to reach a figure closer to 7.4 percent rather than 7 percent," during a press conference regarding the new series.

He further noted that, based on current indicators, nominal GDP growth is projected to approach 11 percent, with the economy expected to surpass the USD 4 trillion mark.

Nageswaran emphasized that the Indian economy is sustaining a robust growth momentum, bolstered by diverse activities.

According to the new series, GDP is projected to grow at 7.6 percent in 2025-26, an increase from the previous fiscal's 7.1 percent.