New Delhi, Dec. 16 -- In Financial Year 2027, the monetary easing is set to drive the above-trend growth of 7.5% amid the expectations of continuous fiscal tightening, said India Market Outlook 2026 Report by Axis Capital on Tuesday.

"We expect the monetary easing to drive above-trend growth of 7.5%. Fiscal tightening is expected to continue, though it would be much slower at 20 bps, but the revival in credit growth in response to much easier monetary conditions is a significant tailwind, as is regulatory easing e.g., EoDB, revoked QCOs, new labour codes, the report said.

"We also believe that consecutive years of 7%- plus growth is likely to trigger upgrades to trend-growth estimates by various forecasters."

Inflationary pressures are...