Policy reforms and services export drive India's FY27 expansion despite global headwinds

India is set to post a 6.6 percent increase in GDP for fiscal year 2027, according to a new ADB analysis. The bank attributes the growth to a series of policy reforms, including cuts to fuel taxes, targeted credit assistance, and a focus on expanding the services export sector.

The analysis points out that India’s export competitiveness has improved thanks to multiple bilateral trade deals, while public capital projects continue to inject demand into the economy. Although higher energy costs have trimmed the growth estimate, the medium‑term outlook remains optimistic.

The ADB notes that geopolitical tensions and weather‑related agricultural challenges still linger, keeping the risk profile slightly tilted to the downside.