PwC: Tax, rate cuts to help India's economy grow 6.5% in FY26

INDIA'S ECONOMIC GROWTH will likely be around 6.5% in 2025-26, aided by a lower interest rate regime, income tax cuts and a likely improvement in urban demand, PwC India experts said on Wednesday.

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With retail inflation likely to remain at below the Reserve Bank of India (RBI)'s forecast of 3.7% for FY26, the central bank may cut the policy rate by another 25-50 basis points, said Ranen Banerjee, partner and leader, economic advisory; and Manoranjan Pattanayak, partner, economics and public policy at PwC (India).