Resilient Growth: Indian Economy Eyes a 6.5% Surge Amid Global Challenges
The Indian economy is forecast to grow by 6.5% in the current financial year, driven by domestic factors like low inflation and increased capital expenditure. Despite global challenges, confidence remains high, with continued investment and consumption growth projected, anchored by strong fiscal management and positive economic indicators.
- Country:
- India
The Indian economy is projected to grow by 6.5% this financial year, despite geopolitical tensions and trade policy uncertainties, according to Economic Advisory Council to the Prime Minister (EAC-PM) Chairman S Mahendra Dev. Dev credits the resilient growth to low inflation, supported by good monsoon and a series of rate cuts by the Reserve Bank of India.
Indicators for 2025-26 show a robust domestic economic performance. Despite global challenges, a 6.5% GDP growth is viable, thanks to sound fiscal management and government capital expenditure boosting private consumption. Although the IMF and World Bank lowered India's growth forecasts due to global tensions, domestic tailwinds remain strong.
Inflation remains subdued with a favorable monsoon, and FDI inflows are on the rise, reinforcing India's attractiveness as an investment destination. Government capital expenditure is expected to prompt further private sector investment, suggesting a positive outlook for India's economy amid global uncertainties.
(With inputs from agencies.)
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