New Delhi: India’s economy is continuing its rapid ascent on the global stage. According to Goldman Sachs, the country’s economic expansion is expected to remain stable in the fiscal year 2027. The investment bank projects India’s real GDP growth at 6.8 percent in FY27, slightly down from 7.3 percent in FY26.
The global brokerage firm highlighted that policy measures supporting domestic demand have strengthened the economy. In 2025, India offered income tax relief, simplified the Goods and Services Tax (GST), focussed on increasing liquidity and the Reserve Bank of India cut the repo rate by a total of 125 basis points to encourage consumption.
India Surpasses The UK In 2021
In 2021, India surpassed the United Kingdom to become the world’s fifth-largest economy, a milestone that reflected decades of steady growth. In the last 25 years, the country grew on average 6.4 percent a year, a bit less than China’s 8 percent.
However, in recent years, India has been catching up fast. Last year, it moved past Japan to become the world’s fourth-largest economy.
Other Forecasts And Projections
In a report released last Friday, SBI Mutual Fund projected that India’s nominal GDP growth for FY26-27 could reach around 11 percent, while real GDP growth may rise to approximately 7.2 percent.
The report said continued policy reforms and the growing demand for higher-quality and premium products among Indian consumers are expected to support economic expansion.
Global economic slowdown and geopolitical tensions could pose challenges, the report added. Separately, Indian Ratings and Research (Ind-Ra) estimated on Tuesday that India’s economy may grow by 6.9 percent in FY27, slightly lower than the projected 7.4 percent growth for FY26.
