India’s Chief Economic Adviser V. Anantha Nageswaran has cautioned that there are “considerable downside risks” to the country’s GDP growth forecast of 7–7.4% for the financial year 2026–27.

Growth May Face Headwinds

According to V. Anantha Nageswaran, while the projected growth rate remains strong compared to global peers, evolving international conditions could pose challenges to achieving these targets.

External Factors in Focus

Key risks highlighted include:

• Slower global economic growth
• Geopolitical tensions impacting trade flows
• Fluctuations in crude oil and commodity prices
• Tightening financial conditions worldwide

Domestic Strengths Remain

Despite the concerns, the adviser emphasized that India’s economic fundamentals continue to be resilient. Strong domestic consumption, ongoing infrastructure investments, and policy support are expected to provide stability.

Need for Vigilance

The government is likely to adopt a cautious approach, keeping a close watch on global developments while ensuring that growth momentum is sustained without triggering inflationary pressures.

Conclusion

The outlook for FY27 remains positive but uncertain, with risks largely stemming from external factors. Policymakers will need to balance growth and stability as India navigates a complex global environment