New Delhi, June 27 -- India's higher nominal GDP growth in FY27 is likely to help the government keep its fiscal deficit under control despite global uncertainties, according to EY India's latest "Economy Watch" report.

The report said that while real economic growth may moderate from FY26 levels amid global headwinds, higher inflation is expected to lift nominal GDP growth, supporting tax collections and helping the Centre manage its finances.

"One important feature of FY27 growth is the likelihood of relatively higher nominal GDP growth as compared to FY26", the report said.

Explaining the impact, EY said, "Combining this with a real GDP growth of 6.7%, we may have a nominal growth of about 12.5% in FY27. This would have a positive i...