India's economic growth is projected to remain strong, with most CXOs expecting it to grow at 6.5-7% in FY27, despite global headwinds. This optimism stems from the current growth momentum, which is described as strong to stable.
Optimistic Projections
A recent ET-PwC survey indicates that 78% of respondents anticipate India's growth to remain within the 6.5-7% range for FY27. A smaller fraction, 21%, expects growth to be between 6% and 6.5%, while only 1% foresees growth in the 7-7.5% range.
Other organizations have also provided their growth forecasts for India. The International Monetary Fund (IMF) has revised India's GDP growth forecast upwards to 6.4% for FY27. While this is a moderation from the 7.3% projected for FY26, it is still a 0.2 percentage point increase from the IMF's October 2025 projection. The IMF's upward revision is attributed to India's better-than-expected performance in the third quarter and strong momentum in the fourth quarter of FY26.
Fitch Ratings forecasts a 6% increase in aggregate revenue for its rated Indian corporates in FY27. Deloitte projects a slightly lower growth rate of 6.6-6.9% for FY27, citing a high base and persistent global uncertainties.
Key Growth Drivers
Several factors are expected to contribute to India's economic growth. These include robust domestic demand, infrastructure spending, and a thriving services sector. The Reserve Bank of India (RBI) has also revised India's GDP growth forecast for FY26 upwards to 7.3%, supported by factors such as rationalization of income tax and goods and services tax (GST), softer crude oil prices, and front-loading of government capital expenditure (CAPEX).
Global Risks and Challenges
Despite the optimistic outlook, India faces several global risks that could impact its growth trajectory. These include macroeconomic volatility, cyber risks, trade disruptions, and potential new tariffs. For instance, the steel and chemicals sectors may experience pricing pressure if US tariffs divert supply to other markets, including India. Sustained higher US tariffs compared to other Asian markets could also dampen economic growth, affecting the operational performance of a broader range of Indian companies.
India as a Preferred Investment Destination
Despite global economic uncertainty, India has emerged as a preferred investment destination. A significant 77% of Indian CEOs expect stronger domestic economic growth, which is well above the global average of 55%. India has also climbed to the second position, after the US, among global CEOs as a potential investment destination.
Indian CEOs are more confident than their global counterparts regarding GDP and revenue growth. This confidence, coupled with India's strong economic fundamentals and long-term growth prospects, makes it an attractive destination for both global and domestic leaders.
Sectoral Outlook
Healthy demand is expected for sectors like cement and building materials, electricity, petroleum products, steel, and engineering and construction (E&C) companies in FY27, driven by robust GDP growth and infrastructure spending. Sectors with significant domestic focus, including oil and gas, cement, E&C, telecom, and utilities, are expected to face minimal disruption due to strong local demand and regulatory stability.
