Govt may peg FY26 GDP growth at 6.5-7%

Fiscal incentives may be offered to boost both investment, consumption

- Rajeev Jayaswal

The government expects the economy to grow 6.5-7% in 2025-26, regaining its momentum after sliding to a four-year low in 2024-25, people familiar with the numbers said, citing a steady policy push that they said will be evident in the budget to be presented on Saturday.

The people, who asked not to be identified, added that the budget would focus on the middle class, farmers, small enterprises, young people and women.

The government is scheduled to table the Economic Survey—a report on the state of the country's economic health that also ventures a growth projection for FY26—on Friday, followed by the budget for 2025-26 on Saturday.