India Ratings and Research (Ind-Ra) has forecasted the Indian economy to grow at 6.6% in FY26.

Economy Business

In December 2024, India Ratings and Research (Ind-Ra) released its 'FY2026 Macro Economic Outlook'. It projected that the Indian economy would grow at 6.6% in the Financial Year 2025-26 (FY26), up from 6.4% in FY24.


      - After a slowdown in the last three quarters, the economy is expected to recover in the 3rd Quarter (Q3) of FY25. The growth had been impacted by the lasting effects of COVID-19 and a strong base effect until FY24.

     

     

Main Point :-   (i) Capital formation is expected to increase by 7.2% in FY26. Both the government and private sectors are expected to contribute to the Gross Fixed Capital Formation (GFCF) growth in FY26.

      (ii) Retail inflation is forecasted to average 4.4% in FY26, down from 4.9% in FY25. Decisions on policy rate cuts will depend on data from the FY26 Union Budget, inflation trends, and changing economic conditions.

(iii) Merchandise trade deficit is expected to be USD 308 billion (Rs. 26,15,536 crore) in FY26, compared to USD 277.4 billion (Rs. 23,55,681 crore) in FY25 and USD 244.9 billion (Rs. 20,79,691 crore) in FY24.

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