India’s macroeconomic outlook remains ‘relatively resilient’ with the economy projected to grow at 6.9 per cent in FY27, although risks from the ongoing West Asia conflict and possible El Niño conditions remain key concerns, according to conglomerate ITC group.
Citing Reserve Bank of India (RBI) estimates, ITC said the Indian economy is well-poised for rapid growth over the medium term, supported by structural drivers such as a favourable demographic profile, rising affluence, rapid urbanisation, accelerated digital adoption, and improved infrastructure & connectivity.
Moreover, recent bilateral trade deals negotiated with the US, the UK, the EU, New Zealand and Oman are expected to strengthen India’s growth prospects and support overall economic momentum.
However, ”the ongoing West Asia conflict has heightened concerns around India’s energy security and imported inflation. A prolonged disruption, coupled with emerging El Niño conditions that could weaken monsoons and intensify heatwaves, poses risks to growth, inflation and the Current Account,” said ITC in its earnings statement.
These factors may also have second‑order impacts on consumer sentiment and demand conditions and remain key ‘monitorables’ in the near term.
In FY26, India remained one of the fastest-growing major economies, recording real GDP growth of 7.6 per cent, aided by resilient domestic demand, tax measures, and monetary easing in the second half of the fiscal year.
This was ”supported by private consumption, improving rural and urban demand conditions, income tax rate cuts, GST rate rationalisation and monetary easing.”.
Headline inflation eased in the first half of the year, driven by benign food inflation supported by higher domestic production and favourable monsoons.
”However, inflation (CPI) firmed up in the second half, reaching 3.4 per cemt in March 2026, reflecting uptick in food prices and higher global energy prices following disruptions in West Asia,” it said.
ITC Gross Revenue overall for FY26 was at Rs. 80867.49 cr, up 10.1 per cent, while EBITDA increased by 4.9 per cent to Rs. 25208.22 crore.
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