India's 2026 Outlook: Growth Eases, Inflation Steady, Capital Flows Crucial

• India's GDP growth expected to ease to 6.8% in FY27 from 7.5% currently, with varied economist opinions.
• CPI inflation projected to remain stable around 4% next year; experts like Mridul Saggar are not concerned.
• Sonal Verma (Nomura) anticipates BoP improvement due to low CAD (0.6-0.8% for FY26) and potential FPI inflows, including $20B from Bloomberg Global Aggregate Index inclusion.
• Soumyakanti Ghosh (SBI) highlights fiscal consolidation, deficit reduction (9.2% to 4.4%), and focus on debt-to-GDP ratio.
• RBI likely to conduct ₹1.5-2 trillion OMOs; 10-year bond yields expected to remain broadly stable.

Why It Matters: India's 2026 economic outlook shows easing growth, stable inflation, and crucial capital flow improvements.