EY projects India’s economy will grow at about 7% to 7.2% in fiscal year 2026-27, despite uncertainty from global conditions. The outlook is supported by domestic demand and government-linked investment, including spending that boosts capacity and activity.
Both outlets note that inflation is a central risk to the forecast. One source cites consumer price inflation at 4.4% in July and wholesale price inflation at 9.8%, with the higher wholesale reading attributed to items such as mineral oils, food articles, metals, chemicals and fuels. Times of India adds that manufacturing is recovering, while stresses on the external sector increase the focus on reducing imports and improving resilience.
