Business · Economy · 1 hr ago
India’s finance ministry says growth can stay strong in FY27
India’s finance ministry said the economy could sustain strong growth through FY27, the fiscal year ending in March 2027.
It kept its estimate for growth in the September quarter at 7.35%, following 7.8% growth in the June quarter.
The ministry said recent GST reforms could ease business compliance and cash-flow pressures by expanding refunds and making tax rules more predictable.
Strong domestic demand, investment and credit have helped support growth, while recent trade agreements may also boost consumption, investment and exports.
The ministry warned that high oil prices and inflation remain risks, alongside uncertainty in the global economy.
Retail inflation reached 5.54% in September, although inflation was below 4% for about 64% of items in the consumer price index.
The government is due to publish September-quarter growth data in late November, while policymakers focus on sustaining activity and keeping prices stable.
India’s finance ministry said the economy is well-positioned to sustain growth through the rest of FY27.
The ministry said policymakers will focus on sustaining economic activity while preserving price stability in the second half of the fiscal year.
Its review estimated real GDP growth at 7.35% in the September quarter, following 7.8% growth in the June quarter.
The ministry cited robust domestic demand, investment and supply-side measures as supports for growth.
It warned that elevated oil prices, food inflation and global uncertainty pose risks.
- Who
- India’s finance ministry, through its Department of Economic Affairs.
- What
- It said India is well-positioned to sustain growth through FY27 while policymakers focus on price stability.
- When
- The monthly economic review was published on October 29, 2026.
- Where
- India.
- Why
- The ministry cited robust domestic demand, investment and supply-side measures, while warning of global and inflation risks.
This story does not have two clearly opposing sides.
India’s economy grew 7.8%.
The GST Council decided on measures including expanded and expedited business refunds and changes to tax-evasion arrest powers.
The finance ministry published its monthly economic review and estimated September-quarter growth at 7.35%.
The government is due to release September-quarter growth data.
- FY27 growth forecast
- IMF: 7%; World Bank, OECD and RBI: 7.1%
- September-quarter growth estimate
- 7.35%
- June-quarter growth
- 7.8%
- September retail inflation
- 5.54%, a 23-month high
- Foreign-exchange reserves
- Import cover of 10.3 months
4 sources
Finmin pegs Q2 expansion at 7.35%,flags capital pressure over US yield
Economy can sustain high-growth trajectory in FY27, recent GST reforms to help: Finmin review
Indian economy may sustain expansion through FY27, says Finance Ministry’s monthly economic review
What people are saying
The Indian economy may remain well-positioned to sustain its expansionary trajectory through the rest of FY27
Amidst elevated crude oil prices, higher food inflation and uncertain outlook for the Kharif crop, sustaining economic activity while safeguarding price stability will be the focus of policymakers in the second half of the financial year.
Although external strain on the rupee persists, India’s foreign exchange reserves position is currently adequate by standard reserve adequacy metrics, providing an import cover of 10.3 months