IN SHORT
India’s economy is projected to grow between 6.4% and 6.7% in FY 2026–27.
The growth is mainly driven by strong domestic demand, says CII President Rajiv Memani.
India continues to outperform economies like China, the UK, the US, and the Euro area.
India's economy is expected to grow between 6.4% and 6.7% in the financial year 2026–27, driven largely by strong domestic demand, according to Confederation of Indian Industry (CII) President Rajiv Memani. Speaking at a press conference in New Delhi, Memani said India continues to outperform major global economies such as China, the UK, the US, and the Euro area, highlighting the country’s resilience amid global uncertainties.
CII’s outlook aligns with forecasts from global institutions. Morgan Stanley has projected India’s GDP to grow at 6.5% in FY27, citing solid policy backing, domestic demand strength, and a broad recovery in consumption. The IMF and other agencies also maintain a similar view, reinforcing India’s position as the fastest-growing major economy in the world.
To maintain and accelerate this growth momentum, CII has proposed a set of next-gen reforms. These include reducing the number of GST slabs from five to three, simplifying input tax credit processes, and bringing petroleum, electricity, and real estate under GST. The body also recommends direct tax reforms, streamlining customs duties, and implementing land zoning reforms to lower production costs.
CII further urged the government to address the looming shortage of critical minerals, particularly affecting the automotive sector. It advocated for building a robust domestic ecosystem for critical minerals and outlined the need for sector-specific strategies in green hydrogen and renewables. The proposal also includes launching a Mission on Energy Transition to help India meet its climate commitments.
Despite ongoing global challenges, India’s medium-term growth outlook remains optimistic, powered by internal demand and a reform-focused policy framework aimed at long-term sustainability and competitiveness.