India raises economic growth forecast to 7.3% — Deutsche Welle

India’s Ministry of Finance has raised its forecast for the country’s economic growth in the current fiscal year to 7.3% from the previous 7.1%. This is stated in the ministry’s October economic review, Deutsche Welle reports. India’s FY27 fiscal year runs from April 1, 2026, to March 31, 2027.

Acceleration of key indicators

The ministry noted that India’s growth rate is holding up against projected global economic growth of around 3%. According to the ministry, growth in a number of indicators accelerated in the previous quarter, including energy consumption, port cargo turnover, goods and services tax receipts, and automobile sales.

Inflation risks

At the same time, the Ministry of Finance warned of continued inflationary pressure and risks to the Indian rupee’s exchange rate. It cited oil prices and global uncertainty among the factors creating inflation risks. The ministry also considers the El Niño phenomenon an additional threat, as it may affect soil moisture ahead of the winter sowing campaign.

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In September, consumer inflation in India stood at 5.54% year-on-year, while the wholesale price index rose by 11.39%. Food price inflation reached 8% in rural areas and 7.18% in cities. Fuel and electricity prices rose the fastest: prices in this category in September 2026 were 25.85% higher than a year earlier.

Reserves and the rupee exchange rate

The ministry stated that India’s foreign exchange reserves amount to about $721 billion. The ministry believes that the country has sufficient capacity to counter external risks and sustain economic growth despite the prolonged weakening of the rupee against the US dollar.