India's GDP to Grow 7.1-7.3% in FY27 With Private Investment Gaining Momentum: Deloitte

New Delhi, Oct 17 (KNN) India's economy is expected to grow by 7.1–7.3 per cent in FY 2026-27, with a sustained revival in private investment providing an additional source of demand, Deloitte India said on Friday.

However, geopolitical tensions, volatile energy prices and trade disruptions remain key risks to the growth outlook, according to Deloitte's Economic Outlook.

The report projected GDP growth of 6.6–7 per cent in FY 2027-28, adding that a sustained revival in private investment would also expand the productive capacity needed to support future growth.

Private Investment Gains Momentum

Deloitte India Economist Rumki Majumdar said India's growth over the past decade has been supported by resilient household consumption and sustained public investment in infrastructure, PTI reported, citing the report.

Improved connectivity, stronger corporate balance sheets and higher capacity utilisation have strengthened the case for businesses to expand, she said.

“The question is whether these conditions will encourage private investment to play a larger role in boosting growth in the coming years. Recent indicators offer grounds for optimism. Gross fixed capital formation grew by 11.9 per cent in the first quarter of FY 2026-27, its fastest expansion in four years,” Majumdar said.

Strategic Sectors To Drive Capital Expenditure

Majumdar noted that increased investment in strategic sectors such as semiconductors, electronics, defence manufacturing, clean energy and AI infrastructure could further support private capital expenditure, given their substantial upfront investment requirements.

“Turning those improvements into sustained private investment now depends on how confidently firms can plan, finance, and execute their next projects,” she said.

Deloitte's Growth Forecast Among Highest

Deloitte's FY27 growth projection is broadly in line with the Reserve Bank of India's and the Organisation for Economic Co-operation and Development's estimates of 7.1 per cent.

The International Monetary Fund, Asian Development Bank, S&P Global Ratings and Moody's have projected India's growth at 7 per cent for the fiscal year.

(KNN Bureau)