Domestic demand to support steady economic growth in 2 d half of FY26

Domestically, the Reserve Bank of India has introduced measures to support credit flow

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NEW DELHI: India’s economy is projected to maintain steady growth in the second half of the current financial year, underpinned by robust domestic consumption, according to a report by SBI Capital Markets (SBICAPS).

Despite ongoing global trade tensions and external risks, internal demand continues to act as a stabilising factor for the economy.

‘The report noted that the recent imposition of steep 50 per cent tariffs by the United States on Indian goods has prompted policymakers to focus more on domestic growth levers. Both the Union and state governments have increased capital expenditure during the year-to-date FY26 period, a move expected to boost gross fixed capital formation.