New Delhi, 6 March (IANS). Despite challenges such as American trade tariffs and global instability, India’s actual GDP (GDP) growth can be 6.5 percent in FY 26. This information was given in a report released by Crisil on Thursday.
This forecast is based on two beliefs. The first of these is normal monsoon and second commodity prices continue to be softened.
The report said that the announcement of tax exemption in declining inflation, general budget 2025-26 and low interest rates are expected to increase.
The report stated that according to high frequency data such as Perchasing Managers Index (PMI) data, India holds its top position among major economies.
Amish Mehta, managing director and CEO of Crisil, said that India’s strength is being re -examined. In the last few years, rapid economic growth, low current account deficit and external public debt and adequate foreign exchange reserves have helped protect from external shocks. It has also provided adequate policy freedom from it.
He further said that the rural area is leading consumption, but urban demand is necessary for short term growth.
Mehta further said that on the other hand, continuous investment and efficiency benefits would be helpful in the moderate period. We hope that by FY 2031, both manufacturing and service will support sector development.
According to the report, the growth rate of the manufacturing sector during FY 2025-31 is expected to be 9.0 percent on average, which was 6 percent on average in the pre-epidemic.
The report estimated that services will play an important role in furthering sector growth, but the manufacturing sector’s share will continue to increase. FY 26 can be 20 percent in 26, which is estimated to be 17 percent in FY 25.
Apart from this, it was informed in the report that in the next financial year, the repo rate can be cut by 50 to 75 basis points.
-IANS
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