Finance Minister Nirmala Sitharaman has said India is set to maintain growth of nearly 7% in FY27 despite global challenges. Speaking in Chicago, she pointed out that India has consistently grown above 7% since FY22, after contracting 5.8% during the pandemic. The Economic Survey projects growth between 6.8% and 7.2% for FY26, while the Reserve Bank of India expects 6.7% in FY27.
She explained that India’s resilience comes from reforms, strong supply chains, and capital mobilisation. Global uncertainties, including the US-Iran conflict and the temporary closure of the Strait of Hormuz, disrupted petroleum, natural gas, and fertiliser supplies. However, India managed to reroute imports and continued fertiliser subsidies to protect farmers.
Sitharaman stressed that private investment is rising domestically, but attracting overseas capital remains vital. She and other ministers, along with the Prime Minister, are engaging with global funds to highlight India’s progress and secure clarity on investor expectations.
Commerce Minister Piyush Goyal recently urged Japan to invest 10 trillion yen ($60 billion) in India by 2035. Yet, foreign direct investment inflows have slowed sharply, falling from an annual average of $40 billion in FY20–FY22 to just $6.95 billion in FY26. This underlines the urgency of India’s push to draw global investors while sustaining its growth momentum.