The Economic Survey has projected India’s economy to grow at 6.8% to 7.2% in FY27, marginally lower than the 7.4% estimated for the current financial year which is driven by consumption and investment.

The growth will come on the back of domestic demand despite global volatility.

“The outlook, therefore, is one of steady growth amid global uncertainty, requiring caution, but not pessimism,” said the pre-Budget document tabled in the Lok Sabha on Thursday.

The Survey noted that the growth estimate factors in the cumulative impact of policy reforms undertaken in recent years, which appear to have raised the economy’s medium-term growth potential to close to 7 per cent.

“With domestic drivers playing a dominant role and macroeconomic stability well anchored, the balance of risks around growth remains broadly even,” it added.