Mumbai, Dec. 3 -- Real GDP of India is projected to grow by 6.7% in fiscal year 2025-26, 6.2% in 2026-27 and 6.4% in 2027-28. Higher tariffs applied by the United States are expected to weigh on exports but private consumption will be supported by rising real incomes as inflation remains low and consumption taxes decline. Buoyant investment will be sustained by declining borrowing costs and strong public capital expenditure. Current low headline inflation is projected to gradually converge towards the 4% target. Risks are broadly balanced. Bilateral negotiations with the United States shall lead to lower tariffs and boost exports and investment while higher oil import prices could possibly create inflation pressures.

The current broadly ...