New Delhi, January 14 (IANS). India’s gross domestic product (GDP) may grow by 7.5 to 7.8 percent in fiscal year 2026, largely due to increased shopping during festivals and good activities in the service sector. This has been said in the Deloitte India report released on Wednesday.
However, this report also says that due to last year’s high growth and global uncertainties, the pace of growth may slow down slightly to 6.6 to 6.9 percent in fiscal year 2027.
The report states that India’s real GDP grew by 8 percent in the first half (April to September) of fiscal year 2026. This shows that India’s economy remains strong despite trade disruptions, changes in foreign policies and investment fluctuations.
Rumki Majumdar, economist at Deloitte India, said that India’s strength has not come by itself, but is the result of policies that promote continuous growth. He said that in 2026, the government’s focus will shift from increasing demand to reforms that increase production, with emphasis on promoting small scale industries (MSMEs) and Tier-2 and Tier-3 cities.
He also said that even though some risks remain in the world, their full impact is unlikely to be visible in FY 2026. It is also expected that the trade agreement between India and America can be completed by the end of this financial year, which will increase foreign investment and keep the currency stable.
The report said that important decisions taken by the government in 2025, such as tax breaks, interest rate cuts and changes in GST, helped in increasing domestic demand and accelerated economic recovery.
Exports have also got a boost due to softening of inflation and free trade agreements (FTAs) with different countries.
The report said India has signed trade agreements with Britain, New Zealand and Oman. Additionally, the European Free Trade Association (EFTA) agreement came into effect and began negotiations with Israel.
These agreements will boost industries in India, expand the scope of services beyond the US, and strengthen investor confidence. This is expected to increase foreign investment (FDI), which is necessary for infrastructure and industrial development.
Another report said that GDP grew by 8.2 percent in the second quarter of FY 2026, production of industries improved and GST collection remained stable, which are good signs for the country’s economy.
The report also said that softening of crude oil prices, reduction in interest rates in the world and changes in tax and GST of the government will boost both expenditure and investment in the coming time.
–IANS
DBP/ABM
