India’s Finance Ministry stated a sustained 8% annual growth is necessary amid global uncertainties.
Current growth projections for FY26 stand at 6.3–6.8%, down from 9.2% in FY24.
To meet the target, investment must rise from 31% to 35% of GDP.
Policy tools include consumer and personal tax cuts to stimulate domestic demand.
RBI has already cut rates by 100 basis points in 2025 to support growth.
Geopolitical headwinds from 50% U.S. tariffs may trim growth by 40 basis points.
India is shifting focus to labor-intensive exports such as textiles and apparel to propel growth.
This growth strategy emphasizes investment-led expansion amid volatility.
The call for higher investment rates signals a major policy pivot.
India’s development narrative pivots toward capital mobilization a
nd structural resilience.