India GDP growth forecast slows to 6.6% for FY27

BMI, a Fitch Group firm, projects India's gross domestic product to expand by 6.6% in FY27, down from 7.7% in FY26. The slowdown is attributed to weaker investment, muted consumption and trade shocks linked to the West Asia crisis.

The forecast notes that the impact of the 2025 GST reforms on consumption is waning, inflation is expected to reach about 5.3%, and disruptions at the Strait of Hormuz could hinder trade. BMI also expects the rupee to trade around 95.1 per US dollar, with the RBI’s recent rate cuts providing short‑term support to the economy amid the energy crisis.