New Delhi, Jan. 6 -- India Ratings and Research (Ind-Ra) forecasts a robust GDP growth of 6.9 per cent year-on-year in the Financial Year (FY) 2027, building on the 7.4% forecast for FY26. Key domestic reforms are poised to act as economic catalysts, including a strategic income tax cut in the FY26 budget, GST rationalisation, and three pivotal foreign trade agreements with Oman, the UK, and New Zealand.

These measures are expected to shield the economy from global challenges, notably the US tariffs. "The main challenges include the mid-2026 El Nino, a weak currency from tepid turbulence, capital flows, sluggish global trade, a strong FY26 growth base effect, and slower net production tax growth due to GST changes. Emerging tech like Al ...