India’s economy is projected to remain stable in FY26, driven by robust domestic demand and an average monsoon season despite global challenges. The Finance Ministry’s latest review raises concerns about slow credit growth and potential effects of US tariffs. While manufacturing and construction sectors show growth trends, the services industry plays a crucial role in expanding the economy. Inflation is in line with the Reserve Bank’s target, and overall macroeconomic fundamentals display resilience amid external pressures. High-frequency indicators suggest broad-based growth, with services leading economic progress in the first quarter. The government emphasizes the significance of utilizing schemes like ELI to boost investments and job creation in manufacturing. Despite global uncertainties, India is anticipated to maintain strong growth among major economies in FY26.
