India's 7% Growth Outlook: Market Support Amid Fiscal, Trade, Currency Risks

• India's projected 7% growth outlook for FY27 (6.8-7.2%) supports markets, reinforcing its position as a strong global growth narrative.
• Economists flag fiscal, trade, and currency risks despite the optimistic growth outlook, noting underlying fragilities.
• Key employment-intensive sectors like manufacturing, trade, hotels, transport, and communication services are still lagging pre-pandemic levels, requiring targeted policy support.
• Uneven sectoral recovery may lead to divergent stock performance, favoring sectors with established demand recovery.
• Experts advise focusing on trade competitiveness and policy execution for the rupee, cautioning against panic over currency movements during growth phases.

Why It Matters: India's strong growth outlook faces fiscal, trade, and currency challenges requiring careful policy management.