India's Economic Growth Path: Steady Progress Amid Inflation Challenges
India's macroeconomic stability is expected to continue through FY26 with a GDP growth of approximately 6.5%. ITC reports rising rural consumption and urban demand improvements. Challenges include food inflation and FMCG sector pressures, but governmental support and infrastructure development will drive economic growth forward.
- Country:
- India
India's economic trajectory remains stable with a forecasted GDP growth of 6.5% by FY26, according to ITC's annual report. The report highlights increased rural consumption and a revival in urban demand, aided by stabilized inflation and tax cuts from the Union Budget.
The latter half of FY25 will see a capex boost due to government initiatives and interest rate cuts, supporting long-term growth. Factors such as demographic advantages, digital adoption, and entrepreneurial culture are seen propelling India's economic expansion.
Despite being the fastest-growing large economy globally, challenges such as food inflation affect the FMCG sector. Development of agricultural and wood-based value chains is crucial to boost the economy, suggesting a need for structural support to optimize India's agri-trade position.
(With inputs from agencies.)
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- India
- macroeconomic
- ITC
- GDP
- growth
- consumption
- inflation
- FY26
- economy
- FMCG
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