- Crisil raised India's FY27 GDP growth forecast to 7% from 6.6% on strong H1 growth
- Q1 GDP growth recorded at 7.8%, supporting optimistic outlook for first half of FY27
- Crude oil prices projected between USD 87-93 per barrel, up from USD 70 in FY26
Domestic rating agency Crisil on Wednesday upped its FY27 GDP growth estimate for India to 7 per cent from the earlier 6.6 per cent on expectation of strong growth in April-September period.
Its chief economist D K Joshi said the revision was made on expectations of strong growth in the first half, with the Q1 GDP growth at 7.8 per cent.
"The economy is doing strong. We expect the first half to witness fast growth, while the growth will slow down in the second half," Joshi told reporters here.
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He said the agency is assuming crude oil to average between USD 87-93 per barrel in FY27 as against USD 70 in FY26 while making growth projections.
The second factor will be monsoon, which is currently at 12 per cent below long-term averages, and likely to impact the winter crop as well. The reservoir levels and the soil moisture levels will impact the rabi or the winter crop which can have an impact on the economic growth as well.
On the currency front, Joshi said that the rupee is undervalued and is likely to appreciate to 93.5 against the dollar by March 2027.
He said the previous currency depreciation episodes have also shown that the currency strengthens up after being under pressure.
The agency expects two rate hikes of 25 basis points each by RBI in October and December, but it is unlikely to hurt private capital investments as corporates are sitting on big sums of cash and deleveraged balance sheets.
He said the RBI will continue deploying various tools to manage the excess liquidity in the system going forward as well.
Joshi said there is a need to look at skilling to make growth process much stronger, stressing that while artificial intelligence can automate some work, it can also create new jobs like previous technological revolutions.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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