India to grow at 7.5-7.8% this fiscal, 6.6-6.9% in FY27: Deloitte

New Delhi, India is likely to clock a GDP growth of 7.5-7.8 per cent in the current fiscal, supported by festive demand and robust services activity, and moderate to 6.6-6.9 per cent in FY27 on a high base and persistent global uncertainties, Deloitte India said on Wednesday.

For India, 2025 will be remembered as the year of "resilience" in domestic demand, decisive reforms in fiscal, monetary and labour policies, and recalibrations in trade policies.

Real GDP grew 8 per cent in the first half (April-September) of the ongoing 2025-26 fiscal despite global headwinds such as trade disruptions, policy shifts in advanced economies, and volatile capital flows.


Deloitte India expects full year GDP growth at 7.5-7.8 per cent for FY2025-26, supported by festive demand and robust services activity.

Furthermore, growth may moderate to 6.6-6.9 per cent in FY2026-27, reflecting a high base and persistent global uncertainties, it said in a statement.

"India's resilience is no accident. It stems from sustained pro-growth policies," Deloitte India, Economist, Rumki Majumdar said.

Early in 2025, signals of external risks such as unpredictable trade policies, geopolitical tensions, and slowing growth among major partners prompted decisive action.

Policymakers introduced tax exemptions, policy rate cuts, and GST rationalization to boost demand. Favourable inflation trends added buoyancy, while trade recalibration through multiple FTAs strengthened exports, Deloitte said.

"With demand-side levers largely addressed, policy focus in 2026 will shift toward supply-side reforms, focusing on MSMEs, and developing tier-2 and tier-3 cities as new engines of growth," she added.

Trade diplomacy also saw a major shift. India signed key agreements with the UK, New Zealand, Oman, and initiated a negotiation with Israel, while the EFTA deal went operational in 2025, all aimed at diversifying export.

"These partnerships unlock manufacturing opportunities and expand India's services footprint beyond the US, while reinforcing investor confidence and paving the way for increased FDI, which remains critical for financing infrastructure and industrial expansion," Majumdar said.

India also deepened engagement with emerging economies across Asia, Africa, and the Middle East, aligning with the broader Global South trade and investment shift.

Majumdar said that external risks remain elevated, though their full impact may not materialize in FY2025-26. However, in FY2026-27, growth may moderate reflecting a high base and persistent global uncertainties.

"We anticipate the India-US trade deal will conclude by the end of this fiscal, which should revive foreign investment and stabilise the currency," Majumdar said.