India's FY26 Growth Seen Closer to 6.3%

Official says lower energy costs good news for country

- ASIT RANJAN MISHRA & SHREYA NANDI

Senior government officials expect India's FY26 economic growth to hover around the lower end of the 6.3-6.8 per cent range projected in the Economic Survey. This comes amid rising global uncertainty triggered by US President Donald Trump's sweeping tariffs on key trading partners, which have raised fears of a potential recession in India's largest export destination.

"We still expect growth to be in the range of 6.3-6.8 per cent as projected earlier, though it may be closer to the lower end of the band," a government official said.

While admitting that a demand slowdown in the US would pose a challenge, a second official said the proposed income-tax cuts in the US might offer some cushion. "Lower energy costs are also good news for India's growth prospects," the official said.