India's Economy: Strong FY26 Growth, FY27 Outlook Split Amid Global Risks

• India's real GDP growth projected at 7.5% for FY26, but FY27 outlook is split due to global risks, with economists divided between 6.5% and 7%+.
• Nominal growth expected to cool in FY26 before rebounding in FY27, with consensus split between 9.5% and 10%.
• CPI inflation seen falling sharply in FY26 due to base effects, then moving back towards 4% by FY27.
• Fiscal consolidation remains on track, with the deficit narrowing through FY27, supporting macro stability.
• Current Account Deficit to stay manageable at ~1% of GDP, and Balance of Payments expected to swing into surplus by FY27; Rupee to gradually weaken to 92 by FY27.

Why It Matters: India's economy shows strong FY26 growth, but FY27 faces uncertainty from global risks and inflation.