India GDP Growth FY27: Assocham Forecast, Exports, Risks Explained

Indian economy is expected to maintain a growth rate above 7% in FY27 this projections are according to the Associated Chambers of Commerce and Industry of India. The forecast also highlights the how strong domestic consumption and rising investments will continue to support economic expansion evena fter global economy tends to slow. The industry body estimates that India’s GDP will grow around 7.6% in FY26 and remain above 7% in the following financial year.

Domestic Demand and Investment Driving the Economy

The major factor behind India’s strong growth outlook is the robust domestic demand. The rising consumption across urban and rural areas has kept economic activity stable and expanding.

Also the India’s Purchasing Managers’ Index (PMI) figures underline this strength.

In February 2026, the PMI stood at 56.9 for manufacturing and 58.1 for services which is indicating strong expansion and outperforming major economies like US, China and Germany.

Export Growth Adds to Economic Strength

India’s export sector continues to be another pillar of growth.

The country’s total exports reached at the $791 billion during April-February FY26 and it is up from $748 billion in the previous year.

This steady rise reflects strong global demand for Indian goods and services.

Key sectors which are driving exports include,

• Engineering goods
• Electronics
• Chemicals
• Gems and jewellery
• Agricultural products

The chamber also expects exports to cross $870 billion in FY26 and it is compared to $824 billion in the previous year.

Global Risks and Geopolitical Concerns

As Indian economy tends to grow but the global uncertainties remain a key concern. The ongoing tensions in West Asia pose the risks to global supply chains and especially in energy markets. The region is a major supplier of crude oil, LNG, petrochemicals and fertilizers which is making it critical for global stability.

Any prolong conflict particularly involving major country like the United States and Iran could lead to,

• Increased logistics and freight costs
• Volatility in commodity prices
• Disruptions in global trade routes