BMI Sees India FY27 GDP Growth Slowing to 6.6% as Inflation Hits 5.3%
Updated
Updated · dailypioneer.com · Jun 12
BMI Sees India FY27 GDP Growth Slowing to 6.6% as Inflation Hits 5.3%
3 articles · Updated · dailypioneer.com · Jun 12
Summary
India’s GDP growth is projected to slow to 6.6% in FY27 from 7.7% in FY26, matching the RBI’s estimate after last year’s stronger expansion.
BMI said the slowdown will come from weaker consumption and investment, as the boost from September 2025 GST reforms fades and West Asia trade disruptions raise costs.
Consumption growth already cooled by 1.1 percentage points to 7.1% year on year in the March quarter of FY26, after a December-quarter surge linked to the tax changes.
Inflation is forecast at 5.3% in FY27, with disruption around the Strait of Hormuz adding pressure even as a weaker rupee near 95.1 per dollar could help exports.
BMI said the RBI’s 125-basis-point rate cuts in 2025 should still cushion the economy through the energy crisis, while expected 50-basis-point hikes would weigh more on FY28.