India economic outlook: GDP growth projected at 8% amid inflation warnings

Indian economy GDP growth inflation forecast merger and acquisition financing manufacturing GVA

India's economic outlook shows mixed signals according to recent reports. SBI Research estimates that India's Q1 FY27 GDP growth will reach approximately 8 per cent, driven by broad-based momentum in services, consumption, and industrial activity. However, the same research firm warns that inflation may see a temporary spike, potentially crossing 6 per cent in October and November, before declining later in the fiscal year.

In the corporate sector, State Bank of India (SBI) reported having five to six merger and acquisition (M&A) financing deals in its pipeline, utilizing the Reserve Bank of India’s new acquisition financing framework. Meanwhile, manufacturing Gross Value Added (GVA) grew by 10.7 per cent in FY26, supported by government structural reforms such as the Production Linked Incentive schemes.

Individual corporate performances also showed growth: Rajputana Stainless reported an 81 per cent year-on-year rise in profit after tax for Q1 FY27, and edtech firm Jaro Education saw its profit after tax increase by 48.27 per cent during the same period.