India Economic Growth to Ease to 7 Percent

India economic growth is forecast to slow to 7.1 percent this fiscal year as higher energy costs and inflation pressures weigh on the outlook. Elevated oil prices and persistent inflation continue to challenge household budgets and job prospects.

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A train passes below an under-construction bridge in Mumbai, India, February 1, 2026. REUTERS/Francis Mascarenhas

India's economic growth is forecast to slow to 7.1% in the fiscal year ending March 2027, down from 7.7% in the previous year. The slowdown comes as higher energy costs increase inflation risks across the region. Economists warn the steady pace will fail to generate sufficient job opportunities for young workers.