India growth seen moderating in second half of FY27 as inflation, liquidity pose risks: DBS
India's economy may slow in the second half of fiscal 2027. Tighter financial conditions and higher energy prices will impact economic activity. Broadening inflation pressures could keep monetary policy focused on price stability. High inflows have strengthened foreign exchange reserves and banking system liquidity. Inflation, liquidity, and capital flows are key variables for policymakers.
India's economy is expected to experience a slowdown in the second half of fiscal year 2026-27, according to DBS Bank economist Radhika Rao. The country began the fiscal year on a strong note, with growth of 7.8% in the first quarter, driven by domestic demand, consumption, public investment, and manufacturing. DBS anticipates full-year growth of 7.3%, down from a revised 7.8% for the previous year.
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- India growth seen moderating in 2nd half of FY27 economictimes.indiatimes.com
