Goldman Sachs: India's FY27 GDP Growth at 6.8%, Fiscal Consolidation Continues

• Goldman Sachs projects India's real GDP growth at 6.8% for FY27, a moderation from 7.3% in FY26.
• Growth will be driven by a decisive policy pivot towards supporting demand, including past income-tax relief and GST rationalization.
• Private consumption is expected to strengthen in FY27, though a broad-based private capex cycle faces hurdles like trade uncertainty and high US tariffs.
• Inflation is anticipated to remain near RBI's 4% target, limiting further repo rate cuts beyond a potential 25-basis-point easing.
• Fiscal consolidation is set to continue, with the Centre targeting a 4-4.2% deficit in FY27.

Why It Matters: India's economy poised for 6.8% growth in FY27 with continued fiscal consolidation, says Goldman Sachs.