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Policy support, digitalisation to keep India growth-resilient in 2026
The Business Guardian
|December 23, 2025
India is expected to remain one of the fastest-growing major economies in 2026, supported by strong policy measures, favourable demographics and rapid digitalisation, even as growth moderates toward long-term trends, according to the Mastercard Economics Institute (MEI).
MEI forecasts India’s real GDP growth at 6.6 per cent in 2026, easing from the robust 7.8 per cent recorded in 2025. Inflation is projected to rise to 4.2 per cent in 2026 from 2.2 per cent in the previous year, reflecting a normalisation from exceptionally low price pressures.
Despite this moderation, India’s growth outlook remains resilient, underpinned by domestic policy support and structural strengths.
The report notes that front-loaded monetary easing, income tax reforms and the rationalisation of goods and services tax (GST) rates are expected to bolster personal consumption.
In addition, targeted export support measures could help mitigate downside risks arising from a challenging global environment.
Disinflationary impulses from lower commodity prices and global goods prices are also likely to support India’s growth resilience.
This story is from the December 23, 2025 edition of The Business Guardian.
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