India’s economy may grow 6.5% in FY2025–26, says S. Mahendra Dev of PM's Economic Advisory Council.
Despite global uncertainties, including geopolitical tensions and changing trade rules, India’s growth outlook remains strong.
Key growth drivers: low inflation, good rainfall, and high infrastructure spending.
RBI may cut interest rates if inflation stays low, boosting business borrowing.
Lower interest rates can help businesses borrow more easily, leading to more in
vestment and faster growth.
Private consumption (what people spend on goods and services) is improving, especially in urban areas, tho
ugh rural recovery is still a bit slower.
IMF and World Bank expect 6.2%–6.3% growth; S&P Global forecasts 6.5%.
Food inflation is falling, which may lead to rate cuts by September–October.
Risks remain from oil prices and global trade, but India is seen as resilien
t.
India likely to be the fastest-growing major economy in FY26.