Demand recovery to shape growth outlook in new year

TAX CUTS, GST REDUCTION STRENGTHEN MACRO BACKDROP

- VIVEAT SUSAN PINTO & MAHESH NAYAK

AS THE CALENDAR turns to 2026, expectations across industry, markets and policy circles are anchored around a firmer growth cycle, supported by reform momentum, tax relief and easing inflation, even as global uncertainties and base effects continue to temper projections.

At the industry level, the tone is one of guarded optimism. RC Bhargava, chairman, Maruti Suzuki India, said the macro environment is becoming more supportive after a cautious phase, with reforms beginning to show through in demand. In automobiles, the revival following GST rate cuts has stabilised volumes, though he underlined clearer projections for the next fiscal would depend on how demand sustains through the January-March quarter and into the first quarter of the new year.