Crisil pegs FY26 GDP growth at 6.5%, led by consumption

Crisil has maintained India's GDP growth forecast for the current fiscal year 2025-26 at 6.5 per cent even as it sees downside risks emanating from the US tariffs.

- TBG NETWORK

In 2024-25, the Indian economy grew by 6.5 per cent in real terms.

In its latest macroeconomics report, the global analytics company noted that India's export growth is expected to be a drag on GDP growth in the coming quarters, following the imposition of 50 per cent tariffs on India by the US, which took effect on August 27.

"Slowing global growth may put further pressure on export growth," it said.

Further explaining the downside risks, it asserted that certain labour-intensive sectors are particularly vulnerable.

Global growth is expected to slow down to 2.9 per cent in 2025 from 3.3 per cent in 2024 according to S&P Global.