India's Economy Expected to Grow Around 7% in 2026-27 with Increased Capital Expenditure

India's economy is projected to grow around 7% in the 2026-27 fiscal year, supported by low inflation, softer interest rates, and a lower tax burden, according to CareEdge Ratings. Despite global uncertainties and pressure on merchandise exports, strong services exports and domestic consumption are expected to sustain growth. Rating agency ICRA anticipates a fiscal deficit capped near 4.3% of GDP, with a 14% increase in capital expenditure to boost infrastructure before rising salary and pension commitments from 2027-28.