India growth News

The report states that the pace of India’s growth will be supported by robust infrastructure investment, strong domestic consumer demand, and export diversification.

While factors like demand buoyancy and GST (Goods and Services Tax) relief reportedly led to an improvement in operating conditions, competition and heavy rains constrained growth, the data showed.

Speaking about the energy sector, Puri said India currently consumes about 5.6 million barrels of crude oil per day, compared to 5 million barrels four and a half years ago. At the present rate of growth, the country will soon reach 6 million barrels per day.

The growth outlook for FY26 remains strong, supported by domestic demand, favourable monsoon conditions, lower inflation, monetary easing, and the positive effects of GST reforms. 

Indicators of capacity utilisation and domestic demand signalled improvement. Lead indicators of manufacturing and services continued to show a robust expansion. Inflation remained benign, well below the target rate, the RBI Bulletin said.

 Prime Minister Narendra Modi on Friday said a self-reliant India does not remain silent and gives a befitting response to those who threaten its security through surgical strikes, airstrikes

The IMF on Tuesday raised India’s growth projection to 6.6 per cent, an upward trend of 0.2 percentage points, in its latest Global Economic Outlook report.

 The report highlighted that investors continued to show strong interest in these asset classes even as the broader property market maintained healthy momentum.  

The HSBC India Manufacturing PMI stood at 57.7, down from 59.3 in August, marking the weakest improvement in sector health since May.

Reflecting this conviction, the global brokerage firm has realigned its portfolio strategy to favour domestic cyclicals over defensives and export-led sectors.

The report expects domestic demand to remain strong, supported by a largely benign monsoon season, cuts in the income and the GST tax and accelerating government investment.

According to the report, the nation is likely to encourage more participation in global trade, which offers increasing gains in economic growth, capital attraction, and to generation of employment opportunities.

Domestic demand will be the key driver of growth, as strong real income dynamics support consumer spending and looser financial conditions should feed through to investment, said the report.

In Crisil’s view, private consumption is poised to be the primary driver of GDP growth in fiscal 2026. It expects GDP to grow 6.5 per cent this fiscal with downside risks.

The strong economic performance amid the US tariff turmoil comes on the back of a 7.4 per cent growth in the previous Jan-March quarter (Q4 FY25).

Nominal GDP has witnessed a growth rate of 8.8% in Q1 of FY 2025-26. 

India's GDP is projected to hold above 6 per cent, even as additional US tariffs hit certain industries, according to the note by BMI.

While labour-intensive textiles and gems and jewellery segment are expected to see a moderate impact, pharmaceuticals, smartphones and steel are currently relatively insulated because of exemptions, existing tariffs and strong domestic demand.

Strong economic growth, political will for fiscal consolidation, and a supportive monetary policy framework to control inflation were the main reasons given by the agency for upgrading India's sovereign credit rating to "BBB" with a stable outlook after an 18-year lapse.

According to the report, S&P India's projection for real GDP growth at 6.5 per cent is on the more pragmatic side when compared to other forecasts.