Yes Bank report – Firstpost

India’s economy is expected to maintain steady growth momentum in FY27, supported by resilient domestic demand, even as inflationary pressures and global uncertainties remain key factors to watch, according to a research report by Yes Bank.

The report projects India’s GDP growth at 6.6 per cent in FY27, moderating from an estimated 7.6 per cent growth in FY26. Headline consumer price inflation (CPI) is expected to average around 5.0–5.2 per cent, remaining within the Reserve Bank of India’s (RBI) tolerance band.

“Balance of risks remain crucial; our inflation estimates indicate headline CPI to average around 5.0–5.2 per cent while growth is expected to slow to 6.6 per cent in FY27 from 7.6 per cent estimated for FY26,” the Yes Bank report noted.

The report highlighted that policymakers will continue to monitor global commodity prices, supply-chain conditions and geopolitical developments, which could influence inflation trends in the coming months.

According to Yes Bank, the RBI is likely to keep interest rates and its policy stance unchanged in the June monetary policy meeting as it assesses evolving price trends and broader economic conditions.

The report added that while inflation remains manageable, risks from higher commodity prices and imported inflation need careful monitoring. It also noted that sectors dependent on fuel and imported inputs, including MSMEs, may face some cost pressures if global prices remain volatile.

Yes Bank expects the central bank to remain data-dependent and focus on anchoring inflation expectations while supporting sustainable economic growth.

Despite near-term challenges, India continues to remain among the faster-growing major economies, with domestic consumption and investment activity expected to provide support.