India poised for 7.1-7.3% growth as private investment rebounds

India's gross domestic product is expected to clock growth of 7.1-7.3 per cent in fiscal 2026-27, supported by an anticipated resurgence in private sector capital expenditure, according to Deloitte India's latest economic outlook released Friday.

The forecast reflects optimism that businesses will increasingly drive growth after years in which household consumption and government infrastructure spending anchored the economy. Indian firms have strengthened their balance sheets, improved connectivity and lifted capacity utilisation levels, creating conditions favourable for expansion, Deloitte India economist Rumki Majumdar said.

"The key question is whether these improved fundamentals will translate into sustained private investment momentum," Majumdar noted, pointing to early indicators of such a shift. Gross fixed capital formation expanded 11.9 per cent during the April-June quarter of the current fiscal year—its fastest pace in four years—suggesting momentum in business spending is building.

The outlook comes with caveats. Deloitte flagged geopolitical tensions, energy price volatility and potential trade disruptions as headwinds that could derail the growth projection. Global uncertainty around these factors underscores the need for policy flexibility to sustain the anticipated recovery in private investment, the consultancy cautioned.