India's nominal GDP growth is expected to increase to 11% in FY27

Current Context: On Jan 2, 2026, SBI Mutual Fund released its 2026 Global Economic Outlook by Namrata Mittal.

• India’s nominal GDP growth is expected to rise to 11% in FY27, up from 8.8% in early FY26.
• Real GDP growth is projected to stay steady at 7.2%.
• Inflation is likely to come down to about 4%, making growth figures more balanced.
• Growth will be driven by credit-led consumption, reforms, and premiumisation (people buying higher-value goods).
• Risks include global slowdown and geopolitical tensions, but India’s fiscal deficit may ease to 4.2%.
• The report also warns that government bond supply could rise to ₹29 trillion, affecting liquidity.

Question:

Q.1 According to the SBI Mutual Fund – Global Economic Outlook 2026, India’s real GDP growth is expected to remain around:
a) 7.2%
b) 7.0%
c) 7.5%
c) 7.8%

Answer: a) The report states that real GDP growth will stay steady at about 7.2%.