The Indian economy has shown a strong growth of 7.7% in the fiscal year 2025-26, but the coming year is expected to be challenging due to global headwinds. The Reserve Bank of India (RBI) has projected a full-year GDP growth of 6.6% for 2026-27 with downside risks.
Prime Minister Narendra Modi has assured that the government will take all necessary steps to maintain economic momentum and improve the 'Ease of Living' and 'Ease of Doing Business' in the country.
The National Statistics Office (NSO) has released provisional estimates for 2025-26 GDP, which shows a growth of 7.7% compared to 7.2% and 7.1% in the previous two years.
The economy was losing some growth momentum in the past year, with GDP growth falling from 8.4% in the September quarter to 7.8% in the March quarter.
Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) led the growth surge in 2025-26, with PFCE growing at 7.7% and GFCF growing at 8.2%.
However, the economic environment leaves little room for complacency, with concerns of a supply shock mutating into a demand shock due to the ongoing war in West Asia and adverse movements in India's balance of payments calculations.
