India’s FY26 growth momentum stays firm on domestic demand, monsoon support, and tax cuts

India’s economic outlook for FY26 remains resilient, supported by robust domestic consumption, healthy monsoon conditions, and recent indirect tax rationalizations. Economists cited continued strength in services, rural recovery, and steady capital expenditure as key contributors to sustaining 6.5–6.7 percent GDP growth. Fiscal discipline remains intact with manageable inflation trends. Experts also noted that infrastructure investment and digital expansion are bolstering productivity gains. The government’s balanced policy mix is expected to support private investment momentum, though global uncertainties may still test export resilience over the next few quarters.