Domestic demand, GST cuts boost India's growth outlook: Finance Ministry
India's Finance Ministry says the country's growth is looking solid for FY26.
The main reasons? People are spending more at home, GST cuts are helping out, and a good monsoon is keeping things steady.
Even with global ups and downs, India's festive season and recent tax reforms are giving sectors like auto a real boost.
IMF, RBI raise India's growth forecast
Manufacturing and services keep climbing, with steady upward trends visible in Q2 FY26.
The IMF now expects India to grow 6.6% this year, while RBI is even more optimistic at 6.8%.
Inflation has cooled off too: headline inflation was just 1.7% in Q2 (mainly because food prices dropped), with core inflation at 4.6% as of September 2025.
Exports up 4.4% in H1 FY26
Exports reached $413 billion in the first half of FY26—a healthy 4.4% rise from last year—driven by stronger services and merchandise sales.
RBI's policies have kept credit flowing smoothly through banks during this trade growth, while ongoing reforms aim to make business easier and promote the Indian Rupee globally.