India economy to grow 6.8%-7.2% in 2026-27, government forecasts

India's economy will grow between 6.8% and 7.2% in the fiscal year that starts in April, the government forecast on Thursday.

The forecast in the annual economic survey represents a slowdown from this fiscal year's 7.4% projection.

The annual economic survey, presented in parliament by Finance Minister Nirmala Sitharaman, says the domestic economy remains on a stable footing but slower growth among trading partners and tariff-induced disruptions to trade could weigh on exports and investor sentiment.

The government projects this fiscal year's growth at 7.4%, beating the 6.3%-6.8% forecast range from last year's survey.

The report on the state of the economy, authored by Chief Economic Adviser V. Anantha Nageswaran and his team in the finance ministry, investment and consumption are likely to gain strength as firms respond to recent reforms.

The report is a precursor to the federal budget on Sunday, which will seek to bolster fast economic growth and buffer the South Asian nation from geopolitical shocks and tariff policy uncertainty from Washington that has upended global trade.

Despite the fast growth and low inflation, foreign investors have continued to sell Indian shares after a record outflow in 2025 on stretched valuations, subdued earnings and geopolitical concerns.

President Donald Trump in August slapped a 50% tariff on some Indian goods entering the U.S.

India and the European Union struck a long-delayed deal on Tuesday that will slash tariffs on most goods, aiming to boost two-way trade and reduce reliance on the United States. In recent months, New Delhi finalised pacts with Britain, New Zealand and Oman.

-Sarita Chaganti Singh/Reuters