{"id":18172,"date":"2026-08-30T10:44:32","date_gmt":"2026-08-30T10:44:32","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=18172"},"modified":"2026-08-30T10:44:32","modified_gmt":"2026-08-30T10:44:32","slug":"indias-economy-set-for-7-7-2-growth-in-fy27-despite-global-headwinds-ey","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=18172","title":{"rendered":"India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds: EY"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-133627262,imgsize-51682,width-400,height-225,resizemode-4\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg\" alt=\"India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds: EY\" title=\"India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds\">India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>India\u2019s economic engine is expected to stay firmly on track in FY27, with real GDP growth projected at 7-7.2%. The growth comes on the back of strong domestic demand and continued government spending on capital projects supporting economic activity, EY said in a recent report.<span class=\"id-r-component br\" data-pos=\"2\"\/>The firm has pegged nominal GDP growth at 12.5-13%, saying that India&#8217;s growth prospects remain relatively strong even as geopolitical uncertainty, high crude oil prices and a weaker global trade environment pose challenges.<span class=\"id-r-component br\" data-pos=\"4\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Industrial activity picks up pace<\/span><span class=\"id-r-component br\" data-pos=\"6\"\/>A stronger performance by the industrial sector has added to the growth outlook. India&#8217;s Index of Industrial Production (IIP) expanded 7.3% in June 2026, its fastest pace in 23 months. <!-- -->Industrial growth averaged 5.7% during the first quarter of FY27, marking its strongest performance in eight quarters.<span class=\"id-r-component br\" data-pos=\"11\"\/>Manufacturing was a key contributor, with output increasing 7.8%. Electrical equipment, motor vehicles, textiles and food products were among the better-performing segments.<span class=\"id-r-component br\" data-pos=\"13\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">PMIs signals moderation<\/span><span class=\"id-r-component br\" data-pos=\"15\"\/>There are, however, signs that the pace of expansion may be moderating. Manufacturing PMI fell to 53.5 in July from 54.2 in June, while services PMI dropped to 53.3 from 57.4. Both remained above 50, indicating that the two sectors continued to expand.<span class=\"id-r-component br\" data-pos=\"19\"\/>Credit conditions also remained supportive. Gross bank credit growth accelerated to 18.6% in June, its highest level in 25 months, EY said.<span class=\"id-r-component br\" data-pos=\"21\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Capex push supports growth<\/span><span class=\"id-r-component br\" data-pos=\"23\"\/>Government spending is another key pillar of the outlook. Capital expenditure growth rebounded to 23.7% in the first quarter of FY27, reversing a 23.3% contraction in the fourth quarter of FY26. <!-- -->The fiscal deficit was at 18.2% of the annual budget target during the quarter.<span class=\"id-r-component br\" data-pos=\"27\"\/>EY said the renewed push on capital expenditure should help sustain demand and strengthen the prospects for real GDP growth.<span class=\"id-r-component br\" data-pos=\"29\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Inflation remains a key risk<\/span><span class=\"id-r-component br\" data-pos=\"31\"\/>Inflation, meanwhile, remains a key risk. Consumer price inflation was 4.4% in July, while wholesale price inflation stood at 9.8%, with mineral oils, food articles, metals, chemicals and fuels driving the increase.<span class=\"id-r-component br\" data-pos=\"34\"\/>The higher WPI inflation could lift nominal GDP growth above the government&#8217;s budget assumption of 10.04%, according to EY. This could support revenue receipts and enable the government to continue its capital expenditure push while maintaining its fiscal deficit target.<span class=\"id-r-component br\" data-pos=\"37\"\/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">External sector faces headwinds<\/span><span class=\"id-r-component br\" data-pos=\"39\"\/>The external sector could prove more challenging. Higher energy costs and weaker global demand may weigh on exports, while India&#8217;s current account deficit could widen to 1.9% of GDP in FY27, based on OECD projections.<span class=\"id-r-component br\" data-pos=\"42\"\/>EY said India could nevertheless improve its external position by reducing import dependence and increasing domestic value addition. A targeted approach covering 1,272 products could potentially replace around US$189 billion worth of imports.<span class=\"id-r-component br\" data-pos=\"44\"\/>Alongside this, greater export promotion and domestic manufacturing could help reduce supply-side vulnerabilities over the medium term, the firm said.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/indias-economy-set-for-7-7-2-growth-in-fy27-despite-global-headwinds-ey\/articleshow\/133627167.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds India\u2019s economic engine is expected to stay firmly on track in FY27, with real GDP growth projected at 7-7.2%. The growth comes on the back of strong domestic demand and continued government spending on capital projects supporting economic activity, EY said in a recent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-18172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-31"],"magazineBlocksPostFeaturedMedia":{"thumbnail":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","medium_large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","1536x1536":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","2048x2048":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-small":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-small-tall":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-small-square":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-small-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-medium":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-medium-masonry":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-large":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg","blogsy-wide":"https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg"},"magazineBlocksPostAuthor":{"name":"admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"India\u2019s economy set for 7-7.2% growth in FY27 despite global headwinds India\u2019s economic engine is expected to stay firmly on track in FY27, with real GDP growth projected at 7-7.2%. The growth comes on the back of strong domestic demand and continued government spending on capital projects supporting economic activity, EY said in a recent [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36"],"magazineBlocksPostViewCount":3,"magazineBlocksPostReadTime":3,"magazine_blocks_featured_image_url":{"full":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg",400,225,false],"medium":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg",300,169,false],"thumbnail":["https:\/\/koshalsambada.in\/wp-content\/uploads\/2026\/08\/indias-economy-set-for-7-72-growth-in-fy27-despite-global-headwinds.jpg",150,84,false]},"magazine_blocks_author":{"display_name":"admin","author_link":"https:\/\/koshalsambada.in\/author\/admin"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/8709732a479614e7a8aa24d3eb1b239f30dc6d90c61464ed495001e7a469d856?s=96&d=mm&r=g","magazine_blocks_category":"<a href=\"#\" class=\"category-link category-link-31\">\u0b26\u0b47\u0b36 \u0b2c\u0b3f\u0b26\u0b47\u0b36<\/a>","_links":{"self":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/18172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18172"}],"version-history":[{"count":0,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/posts\/18172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=\/wp\/v2\/media\/18173"}],"wp:attachment":[{"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koshalsambada.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}