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India’s GDP Growth Could Reach 7% in FY27: Jefferies
Jefferies says India’s economy is growing strongly.
It expects the economy to expand between 6.5% and 7% in FY27.
People and businesses are borrowing more money from banks.
Loans to small businesses, industry, services and companies all increased.
Higher tax collections suggest that buying and business activity remain healthy.
Power use also grew faster during April-August.
Jefferies believes companies may be preparing to invest more.
It also expects the government to keep reducing its budget deficit, although global uncertainty and changing commodity prices remain risks.
Jefferies projects India’s real GDP will grow 6.5%-7% in FY27.
Bank credit growth reached 17.8% year-on-year in July, led by strong lending across sectors.
GST collections rose 14.8% year-on-year in August, while power demand increased 9.4% during April-August.
Corporate borrowing growth may signal a revival in India’s private-sector capital expenditure cycle.
The fiscal deficit is projected at 4.3% of GDP in FY27 despite global and commodity-price risks.
- Who
- Jefferies, including its India research team led by Mahesh Nandurkar, assessed India’s economic outlook.
- What
- India’s real GDP growth is projected at 6.5%-7% in FY27, supported by domestic demand, credit growth and improving activity.
- Where
- India.
- When
- The forecast concerns FY27; supporting indicators include July bank credit, August GST collections and April-August power demand.
- Why
- Strong domestic demand, faster bank lending, improving corporate earnings and possible private-sector capital spending are expected to support growth.
Key facts
- Real GDP forecast
- 6.5%-7% growth in FY27
- Nominal GDP growth
- 11%-12% during the current financial year
- Bank credit growth
- 17.8% year-on-year in July
- GST collections
- Up 14.8% year-on-year in August
- Power demand
- Up 9.4% during April-August
- Fiscal deficit projection
- 4.3% of GDP in FY27
- Foreign currency deposits
- Non-resident Indian deposits reached $136 billion
Sources
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