Archive · 8 Jan 2026
India's Economic Growth Drivers and Budget Expectations
India's economy is growing steadily, with a projected GDP growth of 7.4% for the year 2025-26.
The government and various organizations like PHDCCI, Dun & Bradstreet, and EY India are discussing how to make it grow even faster.
They want to help small and medium businesses (MSMEs) by making it easier for them to get loans and reducing the rules they have to follow.
Other important areas for growth include artificial intelligence (AI), clean energy like green hydrogen, and new types of businesses like quick commerce and tourism.
The budget for 2026-27 is expected to focus on continuing this growth by investing in these areas and making sure taxes are fair and easy to understand.
This will help India become more competitive globally and create more jobs.
India's GDP growth is projected at 7.4% for FY 2025-26, with a focus on consumption and public capital expenditure.
PHDCCI seeks easier access to finance, lower interest rates, and reduced regulatory burden for MSMEs in Budget 2026-27.
Dun & Bradstreet highlights AI, clean energy, and new-age sectors as key drivers for India's economic growth by FY 2026-27.
EY India calls for a balanced fiscal roadmap in Budget 2026-27, focusing on growth continuity, tax certainty, and sector-led investments.
Infrastructure investment is expected to accelerate in FY 2025-26, driven by strong public sector capital expenditure.
- Who
- Indian Government, PHD Chamber of Commerce and Industry (PHDCCI), Dun & Bradstreet, EY India
- What
- Proposals for Union Budget 2026-27, India's economic growth drivers and projections, and sector-specific expectations
- When
- Proposals for Budget 2026-27, GDP growth data for FY 2025-26 and projections for FY 2026-27
- Where
- India
- Why
- To drive growth, employment generation, and enhance global competitiveness across various sectors
- GDP Growth Rate (FY 2025-26)
- 7.4%
- GDP Growth Rate (FY 2024-25)
- 6.5%
- GDP Growth Rate (FY 2026-27)
- 6.6%
- MSME Contribution to Manufacturing (2025)
- 30%
- Registered MSMEs (July 2020 - December 2025)
- 7.30 crore
- Inflation Rate (2026)
- 3.1%
- Current Account Deficit (2026)
- 1% of GDP
- Digital Economy Growth Rate (2030)
- Almost twice as fast as overall economy
- AI's Potential GDP Contribution (Next Decade)
- $600 billion
Sources
Govt pegs India's GDP growth rate at 7.4 per cent for 2025-26
PHDCCI seeks incentives in Budget 2026-27 to push growth of MSME sector
PHDCCI Seeks Incentives In Budget 2026-27 To Push Growth Of MSME sector
India’s GDP estimated to grow faster at 7.4% in FY26
India’s GDP growth to stay robust in 2026 despite risks: UN report
GDP data: Growth remains healthy despite some moderation in the second half
Union Budget 2026 27: Focus to be on key themes of deregulation, exports, MSMEs and implementation
Indian equities enter 2026 on strong domestic footing: Report
EY’s Budget 2026 wishlist: Growth, tax clarity and where the money should go
Infra investment likely to climb, consumption growth may plateau
Budget 2026 must anchor growth continuity, tax certainty and sector-led investments: EY India
