India's Economic Growth: Forecast and Trends

India's GDP is projected to grow 7.5% in FY26, moderating to 7% in FY27, according to a domestic rating agency. Despite external uncertainties, economic growth is supported by favorable inflation, interest rates, and tax conditions. The rupee is expected to appreciate, while export dynamics remain a focus.

India's economy is set for steady growth with the GDP expected to rise by 7.5% in FY26 before moderating to 7% in the following fiscal year, as per a domestic rating agency announcement on Wednesday.

The Indian rupee, currently at historic lows surpassing the 91-mark, is anticipated to appreciate, reaching levels between 89 and 90 in FY27, Careedge Ratings reported.

Key factors such as manageable inflation rates, decreasing interest rates, and reduced tax burdens are poised to underpin economic growth heading into FY27. Additionally, a potential trade deal between the US and India could provide further economic stimulus, Careedge's Chief Economist Rajani Sinha stated.

(With inputs from agencies.)