India's Steady Economic Path Amid Global Challenges
The Indian economy shows resilience amid global headwinds, the finance ministry reports. With steady supply-demand fundamentals and controlled inflation, India enters FY26 strong. However, slow credit growth and global uncertainties might impact trade. Domestic demand and fiscal policies support India's position as a fast-growing economy.
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The finance ministry reported a steady outlook for the Indian economy in its latest monthly review, despite signs of slowing credit growth. The ministry highlighted resilient domestic supply and demand fundamentals in the first quarter of fiscal year 2025-26 (FY26).
Inflation remains within target, and monsoon progress is on track, providing a firm foundation as the economy moves into the second quarter. However, global factors, including a slowdown in the US, could reduce demand for Indian exports, and ongoing US tariff uncertainties might affect India's trade performance.
Despite these challenges, domestic demand and fiscal measures support India's position as a fast-growing economy, projected to grow between 6.2% and 6.5% in FY26. The ministry emphasized the importance of initiatives like the Employment Linked Incentive scheme to drive job creation and economic momentum.
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