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In a global economy facing uncertainty from persistent geopolitical tensions, rising trade protectionism, and tariff uncertainties, India has navigated global headwinds with remarkable resilience while sustaining an impressive growth trajectory. As per MoSPI's estimates, the Indian economy grew by 7.7 per cent in FY26, supported by a sharp recovery in private consumption expenditure, which accelerated to 7.7 per cent from 5.8 per cent in the previous year. The resurgence in consumption was driven by strong rural demand, supported by a buoyant agricultural sector. A favourable monsoon led to higher agricultural output and stable food prices, strengthening household purchasing power while keeping inflation contained. Together, robust consumption and strong agricultural performance emerged as key pillars of India's growth momentum, offsetting the moderation in manufacturing growth.
Looking ahead, the outlook for the Indian economy in FY27 faces some external headwinds but is supported by resilient domestic fundamentals. The emerging El Niño conditions pose a risk to rainfall outlook and distribution and could affect agricultural output. The progress of the monsoon and kharif sowing will remain critical in shaping rural demand, inflation, and overall consumption in the coming months. India also continues to benefit from strong macroeconomic buffers, including robust services exports, comfortable foreign exchange reserves, adequate buffers in the financial system and strong domestic demand.
On the policy front, the government's continued focus on structural reforms, higher government capital expenditure, improvements in the ease of doing business, and infrastructure creation, complemented by a revival in private investment, is expected to strengthen growth prospects. In addition, India's expanding network of Free Trade Agreements (FTAs) is expected to improve market access for Indian exporters, enhance global value chain integration, and attract greater foreign investment, providing further support to growth. Together, these factors are expected to support domestic demand and reinforce India's growth trajectory over the medium term, although weather-related risks and an uncertain global environment require close monitoring.
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IndiaEdge 2025: Accelerating Manufacturing for Expanding Trade. L-R: Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry; Mr Rajiv Memani, President, CII, Regional Managing Partner of EY Africa India region, Chair - EY Growth Markets Council; Mr Sanjiv Bajaj, Past President, CII, Chairman, CII Corporate Governance and Regulatory Affairs Council, Chairman and Managing Director, Bajaj Finserv Limited; Shri Piyush Goyal, Hon'ble Minister of Commerce and Industry, Government of India; Mrs Anjali Singh, Chairperson, CII Northern Region; Co-Chairperson, CII National Coalition for the Future of Mobility; Western Region Chairperson, ACMA; and Executive Chairperson, ANAND Group; Mr Narayan Sethuramon, Co-Chairman, CII International Council & CII Trade Policy Council and Managing Director, Sanmar Matrix Metals Ltd
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IndiaEdge 2025: Building a Resilient Macroeconomic Framework - Fiscal Discipline, Privatization and Statistics. L-R: Dr Janmejaya Sinha, Co-Chair, CII Economic Affairs Council and Chairman-India, The Boston Consulting Group India Private Limited; Mr Sanjiv Bajaj, Past President, CII, Chairman, CII Corporate Governance and Regulatory Affairs Council, Chairman and Managing Director, Bajaj Finserv Limited; Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry; Dr Saurabh Garg, Secretary, Ministry of Statistics and Programme Implementation; Dr V Anantha Nageswaran, Chief Economic Advisor to Government of India; Mr R Dinesh, Past President, CII, Chairman, CII Economic Affairs Council and Executive Chairman, TVS Supply Chain Solutions Limited
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IndiaEdge 2025 - Policies for a Competitive India: Experts Perspectives. L-R: Dr Devendra Kumar Pant, Chief Economist and Senior Director (Public Finance), India Ratings & Research Private Limited, Fitch Group; Mr T K Arun, Senior Journalist, The Economic Times; Dr Surjit Bhalla, Chairman, Technical Expert Group, Household Income Survey-2026; Dr Janmejaya Sinha, Co-Chairman, CII Economic Affairs Council, Chairman, India, The Boston Consulting Group, India Private Limited; Mr Ashok Bhattacharya, Distinguished Fellow, Ananta Centre and Editorial Director Business Standard; Prof Sabyasachi Kar, Director, Institute of Economic Growth; Dr Sachchidanand Shukla, Group Chief Economist, Larsen & Toubro Limited
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CII organised an Economists' Roundtable on 'India's Competitiveness and Economic Security: Policy Priorities for Sustaining Growth and Resilience' on 10 August 2026 in New Delhi, bringing together distinguished economists to discuss policies for strengthening India's growth, competitiveness, and resilience.
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L-R: Chandrajit Banerjee, Director General, CII; Dr V Anantha Nageswaran, Chief Economic Adviser to the Government of India; Anuradha Thakur, Secretary, Department of Economic Affairs, Government of India; V Vualnam, Secretary, Department of Expenditure, Government of India; Dr Arunish Chawla, Secretary, Department of Investment and Public Asset Management (DIPAM), Government of India; Nagaraju Maddirala, Ex Secretary, Department of Financial Services, Government of India; Rajiv Memani, Immediate Past President, CII
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