India's Economy Eyes 7.2% Growth Despite Oil Price Risks

India's economy is expected to maintain a strong growth trajectory in FY27, according to the latest report from EY. The outlook remains positive despite geopolitical uncertainty and weaker global trade conditions.

The firm projects real GDP growth of 7% to 7.2%, while nominal GDP growth is expected to reach 12.5% to 13%. Strong domestic demand and continued government spending on infrastructure and other capital projects will drive economic activity.

Recent indicators have added support to the growth outlook, including a 7.3% rise in India's Index of Industrial Production (IIP) in June 2026, its fastest pace in 23 months.