India's GDP to Hit 6.9% in FY27 Driven by Reforms: India Ratings

• India Ratings and Research (Ind-Ra) projects India's GDP growth at 6.9% for FY27, following a 7.4% estimate for FY26.
• Growth is bolstered by government reforms like income tax cuts, GST rationalisation, and free trade agreements with Oman, the UK, and New Zealand.
• Private consumption, accounting for 56% of GDP, remains a key driver, with PFCE expected to grow 7.6% in FY27 due to easing inflation and tax relief.
• Downside risks include the mid-2026 El Nino, weak currency, sluggish global trade, and potential impact of US tariffs.
• Investment activity (GFCF) is forecast to grow 7.8% in FY27, fueled by government capital expenditure and housing, with inflation within RBI's tolerance band.

Why It Matters: India's economy is set for robust 6.9% GDP growth in FY27, powered by reforms and domestic demand.