Axis Bank has forecast India’s GDP growth at 7.5% in FY27, driven by structural reforms, regulatory easing and improved investment conditions, according to its Economic Outlook 2026.
The report said lower borrowing costs, rising capacity utilisation and stronger corporate balance sheets are likely to lift capital expenditure in FY27. Axis Bank also expects sustained productivity gains to support long-term growth.
Despite faster growth, inflation is expected to remain contained. The bank projects headline inflation of about 4% in FY27, while median inflation has stayed around 3%, reflecting continued slack in the economy.
Axis Bank noted that while policy rates may have bottomed, money supply growth could continue to support credit expansion. The bank also expects the 10-year government bond yield to drift toward 6%.
India’s external position remains stable, the report said, with a competitive real effective exchange rate and a manageable current account deficit outlook.
