Yes Bank projects India's FY27 growth at 6.6%, inflation 5-5.2%

Business Jun 03, 2026

Yes Bank thinks India's economy will grow a bit slower in fiscal 2027, about 6.6%, compared to the estimated 7.6% in FY26.
The main reasons? Global uncertainty and higher prices, though strong demand at home should keep things moving.
Inflation is expected to stay between 5% and 5.2%, which is still within the Reserve Bank of India's comfort zone.

Commodity and supply risks threaten MSMEs

The report points out that rising global commodity prices, supply chain hiccups, and ongoing geopolitical tensions could push costs up, especially for businesses relying on fuel or imports, like micro, small and medium enterprises (MSMEs).
Even with these challenges, Yes Bank expects India's strong consumption and investment to help it stay one of the world's fastest-growing major economies.