Care Ratings projects India’s FY27 GDP growth at 7.2%

India’s GDP growth for Q3 FY26 was 7.8 per cent, following high growth of 8.4 per cent in Q2, as per the revised GDP series.

Care Ratings recently projected India’s FY27 GDP growth at 7.2 per cent.
Favourable impact of the GST rate rationalisation and past central bank rate cuts are expected to remain supportive of the consumption scenario, it noted.
On the investment front, the central government’s continued emphasis on capital expenditure-led growth and some signs of revival in private capex are positives.

Favourable impact of the goods and services tax (GST) rate rationalisation and past central bank rate cuts are expected to remain supportive of the consumption scenario.

On the investment front, the central government’s continued emphasis on capital expenditure-led growth and some signs of revival in private capex are positives.

On the external front, the recently announced trade deals with several countries are favourable developments for India’s export performance, Care Ratings said in a release.

However, the external economic conditions remain volatile. It will be critical to monitor the evolving geopolitical situation and trade policy shifts.

Furthermore, the rise in probability of El Nino in 2026 remains a key watchout as it poses risks for agriculture and inflation outlook.

According to the second advance estimate, the full-year growth for FY26 has been revised higher to 7.6 per cent from the earlier estimate of 7.4 per cent. This follows high growth of 7.1 per cent in FY25.

Fibre2Fashion News Desk (DS)