BMI Sees India FY27 Growth Slowing to 6.6% as 5.4% Inflation Erodes Incomes
Updated
Updated · BusinessLine · Aug 11
BMI Sees India FY27 Growth Slowing to 6.6% as 5.4% Inflation Erodes Incomes
1 articles · Updated · BusinessLine · Aug 11
Summary
India's growth will moderate to 6.6% in FY27 from 7.7% in FY26, BMI said, while still leaving the country Asia-Pacific's fastest-growing large economy.
BMI tied the slowdown to fading support from last September's GST overhaul and inflation averaging 5.4%, which it said will squeeze household incomes and private consumption.
The GST changes cut tax rates on 375 items and simplified the system from four tiers to effectively two main slabs — 5% and 18% — but BMI said that boost is now waning.
BMI also flagged downside risks from a weaker monsoon and renewed Middle East tensions, saying any delay in a US-Iran deal could push oil above its $86-a-barrel 2026 baseline and force further forecast cuts.