GENERAL22 Sept 2026
India growth may slow in H2 FY27 as inflation, liquidity pose risks: DBS
India's economy grew 7.8% in the first quarter, but DBS Bank expects full-year FY27 (financial year 2026-27) growth to ease to 7.3%. Tighter money conditions, costlier energy and base effects may slow activity later this year. Retail inflation hit 4.8% in August, and DBS sees it above 5% in the second half. Keep higher costs in mind while budgeting.
Key Statutory Highlights
- DBS expects India's full-year FY27 growth to average 7.3 per cent, compared with a revised 7.8 per cent for FY26.
- India grew 7.8 per cent year-on-year in the first quarter of FY27, supported by domestic demand, consumption, public capital expenditure and manufacturing.
- Consumer inflation rose to 4.8 per cent in August, and DBS expects headline inflation to remain above 5 per cent in the second half of FY27.
Actionable Advice for Taxpayers / Founders:Review your cost and pricing plans for the coming quarters. If margins are tight, it may help to stress-test your budget for higher energy and borrowing costs, and consider speaking to a CA before locking in long-term commitments.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: