Ind-Ra sees FY27 growth at 6.9%

Reforms cushion global headwinds; Goldilocks phase to persist: Agency

- FE BUREAU

INDIA RATINGS ON TUESDAY projected FY27 growth at 6.9%, easing from an estimated 7.4% in FY26, but said domestic reforms will help the economy withstand mounting global uncertainties, especially those arising from higher US tariffs.

Measures such as the income tax cut, GST rationalisation, and recently signed free trade agreements with Oman, the UK and New Zealand would provide resilience. Outlining the risks, it flagged five major headwinds: a possible El Nino pattern from mid-2026, pressure on the rupee from weak capital flows, sluggish global trade, the base effect of strong FY26 growth, and slower growth in net production taxes due to GST rationalisation.