India's economic growth pegged at 6.5% for FY26 despite Trump tariff threat: CRISIL
CRISIL.
The forecast rests on two key assumptions: the continuation of normal monsoon patterns and soft commodity prices. CRISIL expects that these factors, coupled with cooling food inflation, tax benefits outlined in the Union Budget 2025-2026, and lower borrowing costs, will stimulate discretionary consumption.
«India’s resilience is being tested again. Over the past few years, we have built a few safe harbours against exogenous shocks — healthy economic growth, low current account deficit and external public debt, and adequate forex reserves — which provide ample policy latitude. So, while the waters can turn choppy, consumption-led rural and urban demand will be crucial to short-term growth. On the other hand, continuing investments and efficiency gains will aid in the medium term. We foresee both manufacturing and services supporting growth through fiscal 2031,» said Amish Mehta, Managing Director and CEO of CRISIL.
Furthermore, India's manufacturing sector is poised for significant growth, with CRISIL forecasting an average annual expansion of 9% between fiscals 2025 and 2031.
This is a notable increase from the pre-pandemic average of 6% growth.
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