India Projects 6.8%–7.2% Growth In FY27 As Economic Survey 2026 Highlights Macro Stability

India has projected economic growth in the range of 6.8%–7.2% for FY27, as announced during the tabling of the Economic Survey 2026 in Parliament on January 29, 2026. The finance minister stated that the country’s potential growth stands near 7%, supported by domestic reforms and macroeconomic stability.

Chief Economic Adviser V. Anantha Nageswaran echoed this assessment, highlighting strong underlying momentum. The Survey noted that India’s economy continues to perform better than anticipated, even as global risks intensify.

Growth Outlook For FY27 Backed By Domestic Reforms

The finance minister stated that India’s economy is expected to expand between 6.8% and 7.2% in FY27, reflecting sustained domestic demand and a stable macroeconomic environment. She emphasised that the nation’s underlying potential growth remains around 7%, suggesting structural resilience.

Nageswaran added that India’s growth momentum remains intact due to ongoing reforms and past economic accomplishments. He described FY27 as a period likely to deliver steady expansion as long as global disruptions remain manageable.

Survey Highlights Global Fragility And Rising External Risks

The Economic Survey outlined mounting global uncertainties that could affect economic conditions. It noted that trade fragmentation, geopolitical tensions, and financial vulnerabilities have intensified external risks.

Nageswaran described the global environment as “unpredictable and even dangerous,” citing concerns around global stability. Even so, the Survey acknowledged that India’s growth performance has held up better than expected amid these challenges.

India Positioned As A Macro‑Stable Economy Amid Global Volatility

India’s relative strength was a recurring theme in the Survey, with Nageswaran calling the country “an oasis of macro stability in a turbulent world.” He highlighted that India is achieving high growth alongside very moderate inflation.

This combination distinguishes India from several major economies struggling with inflationary pressures. The Survey also noted that, from a macro perspective, the external sector does not exhibit any warning signals.

Domestic Demand Stays Strong as Key Growth Driver

India’s domestic demand has continued to support overall economic performance. The Survey pointed to rural consumption bolstered by a strong agricultural sector and urban consumption strengthened by tax rationalisation measures.

Nageswaran said core inflation remains well‑behaved when excluding gold and silver. He added that benign inflation trends are expected to persist into FY27, helping maintain purchasing power and consumption momentum.

Read More: India’s Primary Markets Lead Global IPO Activity in FY26.

Conclusion

India’s Economic Survey 2026 presents a cautiously optimistic assessment, projecting FY27 growth in the 6.8%–7.2% range. Strong macro buffers, steady domestic demand and stable inflation underpin this outlook.

At the same time, the Survey warns of global uncertainties that could influence domestic conditions with a lag. With resilience in fundamentals and continued policy support, India remains positioned to navigate external volatility effectively.

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