Key facts
- EY forecasts India GDP growth up to 6.8% in FY27
- Domestic demand cited as the primary growth driver
- Forecast issued amid global trade and geopolitical uncertainty
India's economy could expand by up to 6.8% in FY27, according to a forecast by EY, with the firm pointing to resilient domestic demand as the key pillar supporting the outlook despite global headwinds.
The projection places India among the world's fastest-growing major economies. EY's assessment reflects confidence in India's consumption-driven growth model, even as external factors — including uncertainties around global trade, tariff threats from major economies, and a mixed global recovery — continue to pose risks to export-dependent sectors.
Domestic demand, driven by rising incomes, government infrastructure spending, and a recovering rural economy, has remained relatively insulated from global volatility. Analysts have noted that India's large internal market provides a natural cushion that many export-heavy economies lack.
The EY forecast will be closely watched by investors, policymakers, and the Reserve Bank of India as they calibrate monetary and fiscal decisions for the year. If growth does approach the upper end of the projection, it would reinforce India's standing as a bright spot in an otherwise uncertain global economic environment.