India met its FY26 fiscal deficit target of 4.4 per cent of GDP, with the deficit contained at ₹15.2 trillion (~$159.7 billion) due to expenditure cuts and higher miscellaneous capital receipts, according to ICRA.
However, the agency warned FY27 could see a 40-basis-point fiscal slippage amid West Asia conflict risks, rising subsidies and pressure on oil-related revenues and bond yields.