Archive · 5 Oct 2026
Das Says India Nears 8% Growth as Reforms Build Resilience
Shaktikanta Das says India’s economy is growing quickly and is close to 8% growth.
He says reforms over the past decade helped the country handle problems from around the world.
India’s economy grew 7.8% in the first quarter of 2026–27.
Growth across the four latest quarters averaged a little above 8%.
But Allianz Research expects growth to slow in the next few years.
It also expects inflation to rise before easing.
Das says India will need more reforms and investment to keep growing.
He highlighted technology, stronger financial markets, energy and manufacturing, sustainability, and skills.
He also said AI could help, but issues such as safety and cybersecurity need attention.
Shaktikanta Das said India is within reach of 8% growth, citing stronger economic buffers built through a decade of reforms.
India’s real GDP grew 7.8% in the first quarter of 2026–27, while growth across the latest four quarters averaged slightly above 8%.
Das pointed to reforms including flexible inflation targeting, the Goods and Services Tax, fiscal consolidation, digital payments and banking changes.
Allianz Research forecasts growth of 7.5% in 2026, 7.1% in 2027 and 6.8% in 2028, alongside a rise in inflation before it eases.
Das said future growth will depend on reforms and investment in areas including AI, financial markets, strategic self-reliance, sustainability and human capital.
- Who
- Shaktikanta Das, Principal Secretary-2 to Prime Minister Narendra Modi, and Allianz Research.
- What
- Das said reforms have strengthened India’s resilience and brought growth close to 8%; Allianz Research forecasts slower growth in coming years.
- When
- Das spoke at the Kautilya Economic Conclave; the article reports first-quarter 2026–27 GDP growth and forecasts for 2026–2028.
- Where
- At the Kautilya Economic Conclave in India.
- Why
- Das said reforms helped build buffers against global disruptions, while sustaining growth will require further reforms and investment.
Near-term growth momentum
Risks to sustaining growth
Growth outlook
Near-term growth momentum
Das said recent growth shows India is within reach of 8%, supported by stronger buffers built through reforms.
Risks to sustaining growth
Allianz Research projects growth will moderate from 7.5% in 2026 to 6.8% in 2028.
Economic conditions
Near-term growth momentum
Das cited domestic resilience and support from services exports, remittances, export diversification and a services trade surplus.
Risks to sustaining growth
Allianz Research expects inflation to rise in 2027 and says monetary policy will be sensitive to energy and food prices and currency pressures.
- First-quarter GDP growth
- 7.8% in 2026–27
- Recent four-quarter average
- Slightly above 8%, from July–September 2025 to April–June 2026
- Gross non-performing assets
- 1.68% in June 2026, according to Das
- Growth forecast
- Allianz Research expects 7.5% in 2026, 7.1% in 2027 and 6.8% in 2028
- Inflation forecast
- Allianz Research expects consumer price inflation of 4.7% in 2026, 5.2% in 2027 and 4.2% in 2028
- Expected monetary tightening
- Allianz Research expects India to enter a monetary tightening cycle in the fourth quarter of 2026
- Areas Das highlighted for future growth
- AI, deeper financial markets, strategic self-reliance, sustainability and human capital