India on track for 6.5-7% real GDP growth this fiscal, earnings seen accelerating
Brokerage firm Jefferies projects India's real GDP will grow by 6.5-7% this fiscal year, supported by strong bank credit and domestic demand. Corporate earnings are expected to accelerate, signaling a potential revival in the private-sector capital expenditure cycle.
Why it matters
This outlook suggests India remains a resilient investment destination despite global geopolitical and energy risks, providing confidence to international markets.
India is on track to record real GDP growth of 6.5-7 per cent in the current fiscal, while nominal GDP growth is expected to be around 11-12 per cent, according to a latest report by brokerage Jefferies.The brokerage also expects corporate earnings growth to accelerate to 17 per cent in the fiscal year beginning April 2027, from an estimated 14 per cent in the current fiscal.Jefferies said India's structural growth story remains intact despite geopolitical challenges and elevated energy risks, with economic indicators showing greater resilience than expected.Bank credit points to stronger economic activityJefferies highlighted strong bank credit growth as a key indicator of economic momentum.Bank credit expanded 19.1 per cent year-on-year at the end of August, while corporate lending grew 21.6 per cent in July.
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