India’s GDP Growth Rate Expected to be 6.2%

20-May-2026 05:25 PM

Mumbai: Taking into account various external and internal challenges, a leading rating agency has revised India’s Gross Domestic Product (GDP) growth forecast for the fiscal year 2026-27 from 6.5% to 6.2%. Earlier, for the fiscal year 2025-26, the agency had projected India’s GDP growth at 7.5%, slightly below the National Statistical Office’s (NSO) second advanced estimate of 7.6%.

This year, due to the El Niño weather cycle and a shortage of fertilizers, agricultural performance is expected to be somewhat weak, which could adversely affect the rural economy and farmers’ incomes. As a result, the trade in FMCG products may also see a slowdown. Imports of oil, gas, and chemical fertilizers are facing obstacles. Despite higher fertilizer import costs, the government aims to ensure that farmers do not bear the additional burden.

Industrial growth in the country is also likely to be slow this year. The performance of sectors like mining, energy, power, manufacturing, and others is expected to remain normal. Concerns are also rising due to the sharp depreciation of the rupee and the expanding foreign trade deficit.