New Delhi: India's real GDP growth is likely to remain resilient at 7 per cent-7.2 per cent in FY27, supported by buoyant domestic demand and continued government focus on capital expenditure, while nominal GDP growth could reach 12.5 per cent-13 per cent, according to recent report by EY. The firm said economic growth prospects remain relatively strong despite geopolitical uncertainty, elevated crude oil prices and a weaker global trade environment.
The outlook comes against the backdrop of an improvement in industrial activity. EY noted that India's overall Index of Industrial Production (IIP) growth accelerated to a 23-month high of 7.3 per cent in June 2026, taking average industrial growth in the first quarter of FY27 to 5.7 per cent, the highest in eight quarters. Manufacturing output rose 7.8 per cent, with electrical equipment, motor vehicles, textiles and food products among the stronger-performing segments.
