India likely to witness above-trend growth of 7.5% in FY27: Axis Bank Research
Summary
India is expected to witness an above-trend economic growth of 7.5% in FY27, driven by monetary easing despite ongoing fiscal tightening and contained inflationary pressures.
Key Points
- India is projected to achieve a 7.5% above-trend economic growth in FY27 led by monetary easing.
- Fiscal tightening will continue but at a slower pace of 20 basis points.
- Headline CPI inflation is forecasted to average around 4% in FY27, indicating contained inflation despite faster growth.
- GST reforms are expected to boost fiscal growth, improve compliance, and reduce working capital strain.
