EY projects India's FY27 GDP growth at 7-7.2%

Key facts

• EY projects India's real GDP growth at 7-7.2% for FY27, with nominal GDP growth pegged at 12.5-13%.
• India's Index of Industrial Production (IIP) expanded 7.3% in June 2026, its fastest pace in 23 months.
• Industrial growth averaged 5.7% in Q1 FY27, the strongest in eight quarters, with manufacturing output up 7.8%.
• Manufacturing PMI fell to 53.5 in July from 54.2 in June, while services PMI dropped to 53.3 from 57.4.
• Gross bank credit growth accelerated to 18.6% in June, the highest level in 25 months.
• Capital expenditure growth rebounded to 23.7% in Q1 FY27, reversing a 23.3% contraction in Q4 FY26.
• The fiscal deficit stood at 18.2% of the annual budget target during Q1 FY27.
• Consumer price inflation was 4.4% in July, while wholesale price inflation stood at 9.8%.
• India's current account deficit could widen to 1.9% of GDP in FY27, based on OECD projections.
• A targeted approach covering 1,272 products could potentially replace around US$189 billion worth of imports.