India's economic trajectory continues to show remarkable resilience and strength, with the latest Economic Survey projecting a growth range of 6.8% to 7.2% for the fiscal year 2027. This optimistic forecast underscores the nation's robust domestic fundamentals and the positive impact of structural reforms implemented over recent years.
Strengthened Growth Potential and Reform Momentum
The Survey highlights that India's potential growth rate has now risen to an impressive 7%, a significant upward revision that reflects the cumulative benefits of policy measures aimed at enhancing productivity and efficiency across sectors. This elevation in potential growth positions the economy on a sustainable path of expansion, even as global uncertainties persist.
Domestic Stability as a Pillar of Resilience
On the domestic front, the economy remains firmly on stable footing. Inflation has moderated to historically low levels, although some firming is anticipated in the coming months. More importantly, balance sheets across households, firms, and financial institutions are notably healthier, providing a solid foundation for continued economic activity.
Public investment continues to play a crucial role in supporting growth, while private investment intentions are showing clear signs of improvement. This combination of factors enhances the economy's resilience against external shocks and helps maintain growth momentum.
Broad-Based Consumption Demand
Consumption demand remains a key driver of economic activity, demonstrating remarkable resilience. Steady rural consumption, bolstered by strong agricultural performance, complements the gradual improvement in urban consumption. The rationalisation of direct and indirect taxes has further aided this recovery, reaffirming that the momentum in consumption demand is broad-based and sustainable.
Navigating Global Uncertainties
While the Survey acknowledges that global risks and uncertainties remain elevated, it emphasizes that India's domestic growth drivers are expected to continue supporting economic activity. The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution but not pessimism.
With macroeconomic stability firmly in place and ongoing reform efforts, the Indian economy appears well-positioned to sustain growth in the near-term. The Survey concludes that the outlook for FY27 is shaped by these domestic strengths, alongside evolving external conditions, positioning India for continued economic expansion despite global challenges.
