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India's Economy to Grow at 6.5% in FY26
The Sunday Guardian
|August 31, 2025
India's economy is expected to expand by around 6.5 per cent in FY26, reflecting steady domestic momentum, said the Bank of Baroda, noting that the escalating concerns over ongoing tariff negotiations pose a downside risk, with potential adverse effects on the external sector.
These projections align with the Reserve Bank of India's (RBI) projections of 6.5 per cent, which were announced during the latest Monetary Policy Committee (MPC) meeting on August 6.
The growth outlook is supported by a strong start to the fiscal year, with GDP accelerating to 7.8 per cent in Q1FY26 from 6.5 per cent in the same period last year.
Manufacturing, agriculture, and services sectors provided a significant boost, alongside reasonable traction in consumption demand.
This story is from the August 31, 2025 edition of The Sunday Guardian.
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