India growth seen slowing to 6.6% in FY27, says Fitch Group company BMI
Fitch Group’s BMI expects India’s economic growth to slow to6.6% in FY27, from 7.7% in FY26, as the boost from last year’s GST reforms fades and inflation, projected at 5.4%, erodes household incomes. It flagged downside risks from a weaker monsoon and renewed US-Iran tensions, which could push oil prices higher and hurt consumption.
New Delhi - Fitch Group company BMI has forecasted India's economic growth to decelerate to 6.6% in the current fiscal year (FY27), citing a waning boost from last year's GST reforms and persistent inflation. The Indian economy expanded by 7.7% in the fiscal year 2025-26. Despite being the fastest-growing large economy in the Asia-Pacific region, risks to growth are mainly on the downside due to potential escalations in the Middle East or a weaker monsoon.
BMI expects India's growth to moderate from 7.7% in FY2025/26 to 6.6% in FY2026/27, as the benefits of the GST reforms fade and inflation keeps household incomes down. The key risk to the region's growth remains the US-Iran conflict, which could push oil prices higher and negatively impact real incomes and private consumption.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
