Downside risks to India's growth in FY26 from external sector: Report

After the economic survey projects that the country's growth in FY26 is expected to remain in the range of 6.3 per cent to 6.8 per cent, a report by PwC stated that there are downside risks to the growth from the external factors.

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The report noted that economic growth in the country is facing challenges due to weak urban consumption, high food inflation, slow capital formation, and global uncertainties.

It said "The economic survey projects growth in the range of 6.3 per cent to 6.8 per cent in FY26. There are downside risks to the growth that emerge primarily from the external sector".

However, despite these hurdles, the report noted that the country is likely to remain the fastest-growing major economy in the world, driven by strong domestic demand, a rising working-age population, and stable macroeconomic fundamentals.