New Delhi: India’s economy demonstrated remarkable resilience in the April-September period of FY 2025-26, supported by robust consumption, investments, and government spending. Inflation remained below projections, aided by favourable food prices and recent GST reforms.

An official statement highlighted that a well-balanced external sector performance, stable liquidity, and healthy financial markets underpinned overall macroeconomic stability.

In its report following the recently concluded 57th meeting of the Monetary Policy Committee (MPC), the Reserve Bank of India (RBI) announced it would keep the repo rate unchanged at 5.50 percent, maintaining a neutral stance.

“This signals a balanced approach that supports economic momentum while ensuring financial stability,” the report stated. It further emphasized resilient domestic demand, supportive financial conditions, and a stable external sector, reflecting a cautiously optimistic outlook for the Indian economy.

The Central Bank also revised India’s GDP growth forecast for FY 2025-26 upwards to 6.8 percent, from an earlier estimate of 6.5 percent.

“Domestic growth is performing well due to strong consumption, investments, and government spending. Supportive factors such as a good monsoon, GST 2.0, improved credit flow, and rising capacity utilisation continue to sustain this positive outlook,” the official statement said.

India’s real GDP grew by 7.8 percent in Q1 FY 2025-26, up from 7.4 percent in the previous quarter – marking the fastest pace in seven quarters. This growth was primarily driven by strong investment and consumption.

Consumer optimism for the year ahead, measured by the future expectations index, strengthened further for both urban and rural households, remaining firmly in optimistic territory.

Meanwhile, several global agencies have maintained their positive growth forecasts for India, highlighting the country’s resilience amid ongoing global uncertainties.

– IMF projects 6.4 percent GDP growth for FY26
– Fitch expects 6.9 percent for FY26 and 6.3 percent for FY27
– S&P Global forecasts 6.5 percent for FY26
– United Nations projects 6.3 percent for FY26 and 6.4 percent for FY27
– Confederation of Indian Industry (CII) expects 6.4 to 6.7 percent for FY26
– OECD forecasts 6.7 percent for FY26

These agencies have identified robust domestic demand, expanding investments, and a stable external sector as key drivers of growth. Additionally, strong policy support, structural reforms, and a vibrant services sector are further reinforcing the positive outlook.

Collectively, these projections highlight broad confidence in India’s ability to sustain high growth despite global challenges.

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