India GDP Seen Growing 7.3-7.5% in FY26: Grant Thornton Bharat

The Indian economy is anticipated to grow at a rate of between 7.3-7.5% during the FY ending March 2026, according to Grant Thornton Bharat. For 2026-27, the expectation is that growth will slightly slow to a rate of 7%. The estimations of Grant Thornton Bharat and the National Statistics Office's initial estimate for the FY 2025-26 of 7.4%, followed by an increase to 6.5% in the previous fiscal year, are consistent. 
The Indian economy's continued growth has been primarily the result of the Services and Manufacturing Sector, which means India is still the fastest-growing large economy in the world. Additionally, Exports have remained stable, despite U.S.-imposed tariffs and various trade barriers, which has had a positive effect on overall economic activity.

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Drivers Behind the Growth Projection

As highlighted above, the Services and Manufacturing Sectors account for much of the anticipated 7.3-7.5% GDP growth for FY 2026. Data from the National Statistics Office emphasises the critical role of these sectors in propelling overall GDP. This momentum continues to place India as the top-performing large economy on a global basis.
In addition, Indian Exports overall have continued to do well, despite the increased pressure of external forces on the Indian economy such as importing duties imposed by the U.S. government. These two key areas support continued growth during this fiscal year and the next. As of today, Grant Thornton Bharat's outlook is based on current and historical data.

Broader Economic Outlook

While the "FY27 forecast" of a 7% growth rate indicates a slowdown in growth from a robust growth rate in FY26, it does provide for reasonable assumptions and estimates about many of the external variables that we may face. This assessment from Grant Thornton Bharat indicates a strong and stable domestic development based on a variety of factors.
India's economy competes with trade issues but benefits from the growth generated through industry-specific markets. The forecast lends increased confidence that growth will continue to occur despite changing global markets. Policymakers will continue to monitor these trends to ensure companies and organisations are prepared to compete in the foreign trade environment and continue growing in industry and export strategy development.