Strong domestic consumption and rising investments are projected to support India in sustaining GDP growth above 7% in the upcoming financial year 2026-27, as per a report. The Assocham data anticipates India’s GDP to expand by 7.6% in the financial year 2025-26, with growth likely to remain over 7% in FY27 as well.
Despite global economic uncertainties, particularly in West Asia due to geopolitical tensions, India’s economy is expected to perform steadily. Assocham President Nirmal K Minda attributed this consistent performance to government reforms that have enhanced business confidence over the years.
The report emphasized that India’s consumption levels are currently at a multi-year peak, driven by tax reforms and improved business environment, while investments are also gaining momentum alongside rising demand. The industry body highlighted the increased resilience of India’s economy in recent years, notably post the COVID-19 pandemic.
India has managed to sustain growth above 7% for the past three years despite global challenges like geopolitical conflicts and trade tensions. Key economic indicators, such as India’s high purchasing managers’ index (PMI) for manufacturing and services in February 2026, have placed it ahead of major economies like the United States, China, and Germany.
Exports have exhibited consistent growth, increasing by around 6% between April and February of FY26 to reach $791 billion, compared to $748 billion in the same period the previous year. Sectors like engineering goods, electronics, chemicals, gems and jewellery, and agricultural products have been instrumental in driving this growth.
Assocham expressed optimism that exports could surpass $870 billion this year, up from $824 billion last year. However, the report cautioned about potential risks stemming from ongoing tensions in West Asia, which could disrupt sectors like gems and jewellery, pharmaceuticals, and agriculture due to increased logistics costs and shipment delays.
