India GDP projected to grow 7.1-7.3% in FY27 on private investment

India's economy is projected to grow at a rate of 7.1% to 7.3% in fiscal year 2026-27, according to a report by Deloitte India. This growth is expected to be driven by a revival in private investment and robust domestic demand.

Deloitte economist Rumki Majumdar noted that gross fixed capital formation grew by 11.9% in the first quarter of fiscal 2026-27, marking the fastest increase in four years. This trend suggests growing business confidence. Strategic sectors such as semiconductors, electronics, defense manufacturing, clean energy, and artificial intelligence infrastructure are expected to play a significant role in strengthening the private capital expenditure cycle.

Looking further ahead, the report estimates growth between 6.6% and 7.0% for fiscal 2027-28. While the outlook is positive, Deloitte warned that geopolitical tensions, fluctuations in global energy prices, and international trade disruptions remain primary risks to these economic projections.