DBS Bank’s new report delivers upbeat news for India’s economy, projecting unwavering GDP expansion at 6.5% for 2026 and 6.4% for 2027. This keeps India firmly in the spotlight as one of the world’s top-performing large economies.
CPI inflation is on track to normalize progressively: 2.2% in 2025, rising to 3.5% in 2026 and peaking at 4.5% in 2027. These levels enable the RBI to keep the policy repo rate locked at 5.25%, fostering a predictable borrowing environment.
India’s bond market outlook remains favorable amid global jitters. The 10-year yield is forecasted to decline from 6.60% at the onset of 2026 to 6.40% by year-end 2027. Recent global bond surges are interpreted by DBS as healthy recalibrations, supported by credible monetary policies worldwide.
Looking to the US, the Federal Reserve’s January 27-28 FOMC gathering should see no policy shifts, as it digests the effects of three rate trims against a backdrop of tempered hiring, stable joblessness, and robust earnings.
In essence, the report charts a course of stability for India, insulated from external shocks and primed for enduring growth.