India's Economic Growth to Moderate in H2FY27, Rebound to 7.2% in FY28: ICICI Bank
• According to ICICI Bank, India's economic growth is expected to slow in the second half of FY27 due to a high base effect but is projected to rebound to 7.2% in FY
• The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25%, maintaining a neutral policy stance. Despite global macroeconomic volatility, high-frequency indicators suggest robust growth in the first half of FY
Impact & Risks
The moderation in growth during H2FY27 could impact sectors reliant on domestic demand. However, the projected rebound in FY28 may provide relief to industries and investors. Risks include global economic uncertainties, inflationary pressures, and potential policy rate hikes if core inflation remains above the RBI's target. The trajectory of oil prices and global economic conditions will also play a critical role in shaping India's economic outlook.
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