"We expect the Centre's fiscal deficit in FY26-27 to be pegged at 4.2% of GDP. We estimate that this would take debt-to-GDP down to 55% in FY26-27. For FY25-26, we expect the fiscal deficit target of 4.4% to be met, despite serious slippage concerns," noted the report.
India's economic growth is expected to remain resilient in FY27, supported by strong domestic fundamentals, stable inflation and sustained policy momentum, even as the global environment turns increasingly uncertain due to rising geopolitical tensions and financial fragilities, noted the
India's economic growth remains resilient with strong domestic demand acting as the main anchor, even as the global environment continues to remain fragile, according to the Economic Survey of India tabled in Parliament on Thursday.
India's fiscal deficit is budgeted at 4.4% of GDP in FY26, and policymakers are expected to signal a further consolidation to around 4.0% in FY27, EY said. However, slower-than-expected nominal GDP growth and subdued tax collections have narrowed the room for manoeuvre.
Capital expenditure by the central government is expected to cross Rs 12 lakh crore in (Financial Year) FY27, registering a year-on-year growth of around 10 per cent, according to a report by the State Bank of India (SBI).
The central government's tax collections have remained weak so far in the ongoing financial year 2025-26 (FY26), with growth significantly lower than budgeted estimates, but the situation is expected to improve in the next financial year, FY27, according to a report by CareEdge Ratings.
Supportive fiscal and monetary policies, along with financial deregulation, are expected to aid a revival in the consumer demand in India into FY27, even as the global environment remains uncertain, according to a report by HSBC Asset Management.
The Finance Minister, in the upcoming Union Budget 2026, is likely to refrain from further fiscal consolidation in FY27, according to a report by Nuvama.
India's power sector is expected to see a year of recovery without a sharp rebound in demand, according to a report on India Power Outlook 2026 by Bernstein.
Ind-Ra sees potential for FY27 growth to outstrip predictions, particularly with a swift Indo-US trade deal and a favorable Indian Ocean Dipole mitigating El Nino impacts. Conversely, a weaker-than-expected revival in demand could temper growth. Upcoming changes to the base year for GDP a
In India, the launch of generic semaglutide, expected in the first quarter of FY27, is projected to boost overall Indian Pharmaceutical Market (IPM) growth by 0.5-1%. Prices are anticipated to be 30-50% lower than current levels initially, with the potential for deeper cuts of up to 70-75% o
Credit growth in the country is expected to remain at around 12 per cent year-on-year in FY26 and improve to nearly 13 per cent in FY27, while deposit growth is likely to stay steady at about 10 per cent year-on-year in FY26, according to a report by Motilal Oswal Financial Services.