New Delhi, August 30, 2026: India’s economic outlook remains relatively strong despite a challenging global environment, with the country’s real GDP growth projected at between 7 and 7.2 per cent in the 2026–27 financial year.

The forecast from EY points to continued momentum in the Indian economy even as businesses and policymakers face uncertainty from international developments, trade pressures and changing global financial conditions.

Domestic demand is expected to remain an important pillar of growth. India’s large consumer market, continued infrastructure activity and expanding services economy provide the country with a degree of resilience against external shocks.

The outlook comes at a time when global markets are facing several competing pressures, including geopolitical tensions, changing trade policies and volatility in energy and financial markets.

For Indian businesses, sustained economic growth could support investment, employment and expansion across sectors. At the same time, companies remain exposed to global developments through energy prices, export demand, currency movements and international supply chains.

The latest projection reinforces expectations that India will continue to be one of the major growth engines of the global economy.

However, economists and businesses will continue watching inflation, external trade conditions, energy costs and geopolitical developments closely as the financial year progresses.