India’s Growth to Hold at 7% in FY27 Despite External Headwinds: CareEdge Ratings

India is expected to maintain solid economic momentum in the next financial year, with growth projections pointing to resilience at home even as global conditions remain volatile, as per ANI report. 

Growth Outlook and Domestic Drivers 

According to CareEdge Ratings, India’s real gross domestic product is projected to expand by 7% in FY2026–27, with nominal growth estimated at 10.1%.  

For the current financial year FY2025–26, GDP growth has been placed at 7.4% under the government’s first advance estimates, while the Reserve Bank of India has projected growth at 7.3%.  

CareEdge said domestic momentum has been aided by easing inflation, lower interest rates, tax relief measures, GST rate rationalisation and sustained strength in services exports. 

Resilience With Emerging Risks 

The rating agency noted that while merchandise exports have faced headwinds from tariff-related uncertainty, services exports continue to support India’s external position.  

Summing up the near-term outlook, CareEdge said, “Overall, the domestic fundamentals remain largely resilient despite a turbulent global economic landscape.”  

However, it flagged emerging challenges, including a weakening rupee and softer foreign investment flows, which could weigh on the medium-term outlook. 

Expert Assessment and Policy Signals 

Sachin Gupta, Chief Rating Officer and Executive Director at CareEdge, said, “As India steps into 2026, the macroeconomic picture appears, at first glance, remarkably encouraging.”  

He pointed to controlled inflation, reasonable interest rates and a stronger banking system backed by low non-performing assets and improved credit quality.  

At the same time, he cautioned that currency depreciation and declining foreign capital inflows warrant close attention.  

Read More: RBI Announces ₹14,130 Premature Redemption Price for SGB 2020–21 Series‑X Due on January 19, 2026! 

Conclusion 

While CareEdge remains constructive on India’s growth prospects for FY27, it underlined that preserving this momentum will depend on navigating external pressures, attracting long-term investment and aligning policy priorities with evolving global conditions. 

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