Archive · 26 Jul 2025
India's Economy to Sustain Strong Growth in FY26
India's economy is expected to keep growing strongly.
Experts think it will grow by 6% to 6.5% in the next year.
This is because people are buying more things, and maybe oil will be cheaper.
The government is also trying to help the economy.
The economy did really well in the last few months.
India is growing faster than other big countries.
India's real GDP growth projected at 6-6.5% in FY26.
Economy grew by 7.4% in Q4 FY25, exceeding expectations.
Domestic consumption and lower oil prices may support growth.
UBS notes India is less vulnerable to global trade shocks.
Policy emphasis on improving monetary transmission continues.
- Who
- UBS, IMF, and CEA V. Anantha Nageswaran.
- What
- India's projected economic growth in FY26 and the factors influencing it.
- When
- FY26 and Q4 FY25.
- Where
- India
- Why
- To assess the economic outlook and growth drivers.
Potential Risks to Growth
Growth Drivers
Impact of Trade Policies
Potential Risks to Growth
Tariff increases may dampen growth.
Growth Drivers
Strong domestic demand and monetary easing may offset risks.
- Projected Real GDP Growth (FY26)
- 6-6.5%
- Q4 FY25 GDP Growth
- 7.4%
- IMF Growth Projection (2025)
- 6.2%
- IMF Growth Projection (2026)
- 6.3%
- Goods Trade Dependence
- Limited
- Services Export Share
- 47%
Sources
India’s External Position Moderately Strong in FY25: IMF
Making sense of FDI trends
India to sustain 6-6.5% y-o-y real GDP growth in FY26 amid supportive domestic demand: UBS
India to maintain 6-6.5% YoY real GDP growth in FY26, despite tariff pressures: UBS Report
