Goldman Sachs raises India's FY27 growth forecast to 6.5%
India's economy is holding up well, despite tough global conditions like energy shocks and geopolitical tensions.
Thanks to steady domestic demand and solid exports, Goldman Sachs has bumped up its growth forecast for FY27 to 6.5%.
They are still optimistic for 2026-27 too, as there is a view that growth could remain around 7%, while some policymakers believe it could even touch the 8% mark, especially as crude oil prices ease.
India frontloads FY27 capital spending
India's GDP keeps growing, with credit activity and GST collections staying high.
The government is investing heavily in infrastructure: more than 20% of planned capital spending was used in just the first two months of this fiscal year.
Exports are seeing double-digit growth, boosted by strategies and reforms like GST and the Production-Linked Incentive scheme.
Plus, RBI's moves to attract foreign investment are helping stabilize the rupee.
Trade deals with the UK and the US could add even more fuel to India's economic engine, despite some bumps like unpredictable monsoon rains or unresolved tariff talks.