CRISIL Projects India’s GDP Growth to Rise to 6.7% in FY26.
Economy Business
According to the CRISIL Ratings Limited (formerly Credit Rating and Information Services of India Limited) report, India’s Gross Domestic Product (GDP) growth is projected to improve to 6.7% in Financial Year 2025-26 (FY26).
- The report highlights three key drivers expected to support this growth: Reserve Bank of India (RBI) rate cuts, lower crude oil prices, and a normal monsoon.
- The report highlights that a sustained decrease in food inflation, combined with stable non-food inflation, could lead to an RBI rate cut in the coming months.
- Headline inflation is moving closer to the RBI's 4% target, with Consumer Price Index (CPI) inflation decreasing from 5.5% (November) to 5.2% (December). Food inflation dropped from 9% to 8.4%, while non-food inflation remained steady at 3.1%.
Main Point :- (i) CPI inflation is projected to average 4.6% for the current fiscal year (FY25), with a slight upward bias in the forecast.
(ii) The Index of Industrial Production (IIP) increased to 5.2% in November, up from 3.7% in October (revised from 3.5%), driven by strong performance in investment goods and consumer durables, aided by a low base effect.
(iii) Agricultural growth is expected to rise, supported by high reservoir levels, boosting rabi crop output, farm incomes, and rural consumption. Increased agricultural production could reduce food inflation pressure, encouraging discretionary consumption.
About CRISIL Ratings Limited
Managing Director : Subodh Rai
Headquarters : Mumbai
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