GDP

India’s economy is projected to grow at a robust 6.9% in fiscal year 2026-27, according to India Ratings and Research (Ind-Ra). The forecast reflects strong domestic consumption, sustained investment, and policy-driven support for infrastructure and manufacturing. Services, particularly IT and financial sectors, are expected to contribute significantly, while private consumption remains resilient amid moderating inflation. Ind-Ra highlights that fiscal prudence, favorable demographics, and targeted reforms will underpin growth momentum.

India’s economy recorded robust growth of 8.2% in the second quarter, marking the highest quarterly expansion in six quarters. The surge reflects strong performance across manufacturing, services, and consumption-driven sectors, signaling resilience amid global economic uncertainties. Analysts attribute the growth to sustained domestic demand, policy support, and improving export trends. The Q2 expansion reinforces India’s position as one of the fastest-growing major economies globally, highlighting structural strengths and the effectiveness of fiscal and monetary interventions.

The State Bank of India (SBI) has projected India’s GDP growth for Q2 to exceed 7.5%, reflecting sustained economic resilience amid global uncertainties. The forecast is underpinned by strong domestic consumption, healthy investment activity, and robust performance across manufacturing and services sectors. Analysts note that fiscal prudence, improved liquidity, and strategic policy interventions have supported business confidence and demand recovery.

India’s economy posted a robust growth surge in the latest quarter, with rising domestic demand emerging as the primary catalyst for expansion. Analysts credit resilient household consumption, government infrastructure spending, and a steady revival in private investment as the key contributors to the momentum. While external headwinds such as global inflation and trade uncertainties remain, experts suggest that India’s domestic fundamentals are cushioning the impact.