BAKU, Azerbaijan, June 29. Indian economy is expected to clock an average growth rate of 6.7 percent till 2026-27 fiscal driven by domestic consumption, S&P Global Ratings Senior Economist (Asia Pacific) Vishrut Rana said on Wednesday. He said the economic growth in the current fiscal is expected to come in around 6 percent, lower than 7.2 percent clocked in 2022-23, Trend reports.
"We are seeing some headwinds from the trade side which is affecting activity and that is one of the factors that is affecting growth this year," Rana said at a webinar.
The factors that are driving the slowdown from 7.2 percent growth last fiscal are weaker external environment, moderation in pent-up demand, and softening private consumption activity, Rana said, adding, with tighter monetary policy there is expected to be some impact on consumer demand.
Reserve Bank of India has projected GDP growth in the current fiscal to be 6.5 percent.
Further, Rana said there is a "strong tailwind" coming from the investment side and the investment outlook is looking significantly stronger.