New Delhi:
Despite challenges such as American trade tariffs and global instability, India’s actual GDP (GDP) growth can be 6.5 percent in FY 26. This information was given in the report released by Crisil on Thursday. This forecast is based on two beliefs. The first of these is normal monsoon and second commodity prices continue to be softened.
India remains intact on top positions among major economies
The report said that the announcement of tax exemption in declining inflation, general budget 2025-26 is expected to increase due to reduced interest rates. The report stated that according to high frequency data such as perchasing managers index (PMI) data, India has maintained its top position among major economies.
Crisil’s Managing Director and CEO, Amish Mehta said that India’s strength is being re -examined. In the last few years, rapid economic growth, low current account deficit and external public debt and adequate foreign exchange reserves have helped protect from external shocks. Also, it has also got adequate policy freedom. Rural area is leading consumption, but urban demand is necessary for short term growth.
Amish Mehta further said that on the other hand, continuous investment and efficiency benefits will be helpful in the moderate period. We hope that by FY 2031, both manufacturing and service will support the field development.
Manufacturing sector growth rate expected to be 9.0% on average
According to the report, during the financial year 2025-31, the growth rate of the manufacturing sector is expected to be 9.0 percent on an average, which was an average of 6 percent in the earlier decade of the epidemic. The report estimated that the services would play an important role in furthering the sector growth, but the stake of the manufacturing sector will continue to increase. FY 26 can be 20 percent in 26, which is estimated to be 17 percent in FY 25.
Apart from this, it was told in the report that in the next financial year, the repo rate can be cut by 50 to 75 basis points.