India's economy set for 7% growth in FY27, says CareEdge Ratings

Business Jan 18, 2026

Good news on the numbers front: CareEdge Ratings predicts India's economy will grow by 7% in 2026-27.
This positive outlook is thanks to things like lower inflation, reduced interest rates, and a lighter tax load.
For this year (2025-26), growth is expected to hit 7.4%, helped along by income tax cuts, GST tweaks, and strong demand for Indian services abroad.

Challenges remain—and strategy matters

But it's not all smooth sailing. The rupee has dropped over 15% against the pound and euro in the past year, and nearly $18 billion in foreign investment left the country in 2025.
CareEdge points out that focusing on innovation, R&D, and supporting agriculture will be key if India wants to keep its momentum and stay competitive globally.