India's economy set for 6.9% growth in FY27, says Ind-Ra

Business Jan 06, 2026

India's economy is expected to grow by 6.9% in 2026-27, according to Indian Ratings & Research (Ind-Ra).
That's a slight slowdown from the projected 7.4% this year, but still solid.
The boost comes from moves like income tax cuts, GST rationalization, and new trade deals with Oman, the UK, and New Zealand.

What could impact this growth?

Ind-Ra points out that global issues—like US tariffs and El Nino weather—could throw some curveballs.
Still, strong rural demand and government spending on infrastructure are helping keep things steady.
With stable inflation and more money in people's pockets thanks to tax cuts, Ind-Ra thinks economic momentum should hold up into FY27—even if urban demand is a bit weaker right now.