Axis Bank says India's economy could hit 7.5% growth in FY27
Axis Bank's Chief Economist, Neelkanth Mishra, is feeling upbeat about India's future—he expects the economy to grow by 7.5% in 2026-27.
He credits this optimism to "easing headwinds," saying, "we can run the economy above trend for a while."
Even with some bumps in previous years, India's growth has held up well.
Quick catch-up: What's been going on?
In FY25, India managed a solid 6.5% growth despite tighter budgets and slower credit growth.
The next year saw the fiscal deficit shrink from 4.8% to 4.4%, even after tax cuts—a sign of steady financial discipline.
What's next?
For FY27, the fiscal deficit is expected to drop further to 4.2%, helped by a bounce-back in credit growth and friendlier monetary policy.
Mishra compared this shift to airplane headwinds dropping from 250km/h to just 100km/h—making for smoother sailing ahead.
Earnings outlook: Sectors driving the momentum
Mishra also sees company earnings rising by about 14% in 2026, with momentum expected to return to lagging sectors such as automobiles and financials.
Financials, IT, industrials, and energy are set to make up most of the gains—so expect these industries to be key players going forward.