The Union Budget 2026 has projected India’s GDP growth for FY27 at 7.4%, reflecting strong confidence in the country’s economic momentum despite global uncertainties. The estimate underscores the government’s optimism about sustained growth driven by higher capital expenditure, infrastructure expansion, and steady domestic consumption.
According to budget documents, key growth drivers include continued investment in roads, railways, digital infrastructure, manufacturing, and renewable energy, along with reforms aimed at boosting ease of doing business. The government also highlighted resilience in the services sector and improving performance in manufacturing as major contributors to the growth outlook.
The FY27 growth projection comes amid efforts to maintain fiscal discipline while prioritising job creation, innovation, and inclusive development. Economists note that achieving the 7.4% target will depend on global economic stability, inflation control, and the effective implementation of announced policy measures.
With this forecast, India is expected to remain among the fastest-growing major economies in the world in the coming financial year.
