S Mahendra Dev, Chairman, EAC-PM
Business
M
Moneycontrol07-01-2026, 17:30

India's 'Goldilocks' Economic Run to Continue for Two More Years: EAC-PM Chair

  • EAC-PM Chair S Mahendra Dev predicts India's 'Goldilocks' phase of high growth and low inflation will extend for two years.
  • FY27 growth is projected at 6.5-7%, driven by strong domestic consumption and public capital expenditure.
  • FY26 growth is estimated at 7.4%; CPI inflation expected around 4% next fiscal year.
  • Increased FDI/FPI inflows are anticipated in 2026, potentially leading to rupee appreciation.
  • Corporate investment announcements hit a decade high of Rs 15.1 lakh crore, with Google investing $15 billion in AI data centres in Andhra Pradesh.

Why It Matters: India's economy is poised for sustained high growth and stable inflation for the next two years, fueled by domestic demand and investments.

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