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CRISIL has projected India's GDP growth to be 6.5% for the financial year FY26.

Economy Business | Dated: 06 Mar 2025

In March 2025, CRISIL Limited (formerly known as Credit Rating Information Services of India Limited), a leading global rating agency based in Mumbai (Maharashtra), released its outlook for the Financial Year 2025-26 (FY26). The agency projects India's Gross Domestic Product (GDP) growth at 6.5% for FY26.

🎯 Key Highlights:

  • - This forecast represents a slowdown compared to the 9.2% growth India achieved in FY25. The growth projection is supported by expectations of a normal monsoon, lower commodity prices, and a recovery in private consumption.
  • - CRISIL's forecast assumes a normal monsoon and stable commodity prices, both of which are expected to boost agricultural production and overall economic stability.
  • - Private Final Consumption Expenditure (PFCE) is projected to grow at 7.6% in FY25, driven by strong agricultural production, reduced food inflation, tax benefits from the Union Budget 2025-26, and increased funding for key schemes, which are expected to support economic growth.

💡 Other Important Facts:

  • (i) Investment growth will rely on continued private corporate investment, while the government's capital expenditure (capex) plans are expected to return to normal levels to meet fiscal deficit targets, potentially limiting overall fiscal stimulus.
  • (ii) Potential tariff hikes by the United States (USA) and global trade uncertainties could negatively impact India's domestic growth.
  • (iii) Trade redirection might lead to higher imports from China, which could affect India's net exports in FY26.

📚 Test Your Knowledge:

Recently, CRISIL has projected India's GDP growth to be what percentage for the financial year FY26?

Correct Answer: 6.5%

🚀 Quick Recap:

About CRISIL Limited

  • CEO : Amish Mehta
  • Headquarter : Mumbai