India set to miss FY27 fiscal deficit target as costs rise and spending gets deferred

Published on 24 April 2026

A key inputs export curbs plan could jolt prices

India’s fiscal deficit for FY27 is likely to exceed the budgeted target, with BMI projecting it could reach about 4.5% of GDP. The pressure is linked to policy responses to the West Asia conflict, including support for firms, higher energy and fertilizer subsidies, and possible export curbs on critical inputs like helium and sulphur. Infrastructure spending may also be deferred to contain costs.

FY27 fiscal deficit may overshoot the budget target
West Asia conflict-linked measures are driving higher spending
Possible export restrictions on helium and sulphur are on the table
Subsidy hikes and deferred infrastructure could be used to manage costs

#west asia conflict #fiscal deficit #energy prices #subsidies #india budget

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India set to miss FY27 fiscal deficit target as costs rise and spending gets deferred

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