16 October,2026 02:02 PM IST | New Delhi | mid-day online correspondent
Representational Image. File pic.
Deloitte India said on Friday said the Indian economy is expected to grow by 7.1-7.3 per cent in the current financial year, supported by strong consumption and sustained public infrastructure investments, according to news agency PTI.
Deloitte Economic Outlook projected India's economy to grow by 7.1-7.3 per cent in FY 2026-27 and 6.6-7.0 per cent in FY 2027-28.
The report said that a sustained revival of private investment would provide the country an additional source of demand while building the productive capacity needed for future growth.
However, it flagged geopolitical tensions, global trade uncertainties and fluctuating energy prices as risks to the economic outlook.
"Over the past decade, India's growth has rested on resilient household spending and a sustained push in public infrastructure. Businesses now have better connectivity, healthier balance sheets, and higher capacity utilisation, which are strengthening the case for expansion," Deloitte India Economist Rumki Majumdar said.
"The question is whether these conditions will encourage private investment to play a larger role in boosting growth in the coming years. Recent indicators offer grounds for optimism. Gross fixed capital formation grew by 11.9 per cent in the first quarter of FY 2026-27, its fastest expansion in four years," she added.
Majumdar said investment in strategic sectors such as semiconductors, electronics, defence manufacturing, clean energy, and AI infrastructure will add to the private capital expenditure momentum as these sectors require substantial upfront investment.
"India has improved many of the business conditions needed to expand. Turning those improvements into sustained private investment now depends on how confidently firms can plan, finance, and execute their next projects," she added.
Deloitte's FY27 GDP growth projection is in line with the Reserve Bank of India's (RBI) GDP projection of 7.1 per cent for FY27. The apex bank had done an upward revision after its monetary policy committee meeting earlier this month.
Many rating agencies such as S&P Global Ratings and Moody's expect India to clock a growth of 7 per cent this fiscal year. The International Monetary Fund (IMF) expects Indian economy to grow at 7 per cent, while the World Bank projects the growth at 7.1 per cent.
(With inputs from PTI and ANI)
