Overview
- India may peg FY27 nominal GDP growth at about 10%, up from roughly 8% this year, according to an official cited in Economic Times, with inflation expected to rise on base effects.
- Government first advance estimates put FY26 real GDP growth at 7.4% with nominal growth near 8%, even as Q2 FY26 real growth reached a six-quarter high of 8.2%.
- The RBI has described current conditions as a rare Goldilocks phase and raised its FY26 growth projection to 7.3% in December.
- Goldman Sachs expects the Union Budget to continue favoring household demand support, projecting consumption growth of 7.7% in 2026 and a recovery in bank credit to around 13% year on year.
- PwC assesses the Centre is on track to meet the FY26 fiscal deficit target of 4.4% of GDP, potentially improving to 4.3%, with expenditure savings and buffers offsetting weaker tax receipts.