New Delhi:
Global Credit Rating Agency Crisil said on Monday that India’s GDP growth rate in FY 26 could be 6.5 percent. However, rising American tariffs still remain risk for development. Krisil hopes that the monetary policy of RBI will make some compensation for external challenges.
The report said, “Interest rates, relief in income tax and decrease in inflation will promote consumption in this financial year. Good monsoon will also increase agricultural income.”
The report further stated that crude oil prices have declined due to fear of slowness in the global economy. This will promote domestic development. Riport stated that the American tariff increase is a major risk for GDP growth forecast for FY 2026 of Crisil, as continuous changes in uncertainty and tariffs can obstruct investment.
The output of Capital, Infrastructure and Construction Goods has increased in the second half of FY 25. The reason for this is to increase construction/ capital expense activities.
The latest RBI’s latest ‘quarterly industrial landscape’ survey has seen a strength in demand in the fourth quarter (fourth quarter of FY 25). Riport reported, “RBI’s latest Consumer Confidence Survey indicates improvement in both rural and urban areas in March. All these factors confirm improvement in domestic demand. In the fourth quarter Is.”
The industrial growth rate measured by the Industrial Production Index (IIP), 5.2 percent (modified by 5.0 percent) slowed down to 2.9 percent in February, due to an increase in production in mining and manufacturing sectors, while the power sector was registered.
Crisil said, “On average, the IIP growth in the fourth quarter as of February was 4.0 percent, which is largely recorded in the December quarter 4.1 percent.”