Axis Bank has projected India’s GDP growth at 7.5% in FY27, citing strong structural drivers and limited inflation risks, in its Economic Outlook 2026 report.
The bank said economic growth would be supported by regulatory easing, lower borrowing costs and improved capital formation, alongside a cyclical boost from policy support. Despite faster growth, Axis Bank expects inflation to remain anchored, with headline inflation seen at around 4% in FY27.
Median inflation, viewed as a better indicator of core price pressures, has remained stable at close to 3%, reflecting ongoing slack in the economy. Axis Bank said this provides room for growth without significant inflationary concerns.
The report highlighted improving corporate financial health, rising capacity utilisation and the need for fresh capital expenditure as key drivers for investment growth. Axis Bank expects the 10-year yield to trend toward 6% in FY27.
Externally, the bank said India’s balance of payments remains stable, with recent rupee weakness helping restore competitiveness.
