India set for 6.5% growth in FY26: NITI Aayog
What's the story
India's economy is on track to achieve a 6.5% growth rate in the current fiscal year, despite global challenges and tariff pressures, according to Dr. Arvind Virmani, Member of NITI Aayog. The projection comes after a strong start with a surprising 7.8% growth in Q1 FY26, exceeding earlier predictions of 6.5-6.7%.
Reform impact
Major reforms like GST 2.0 will boost growth
Dr. Virmani emphasized that major reforms such as GST 2.0 will play a key role in sustaining this growth momentum. The new Goods and Services Tax (GST) is aimed at simplifying the tax structure and making it more efficient. However, he also noted that the real impact of these reforms would be seen over time, not immediately.
Global scenario
Ongoing reforms vital for steady growth amid global challenges
Dr. Virmani stressed the importance of ongoing reforms as India navigates global challenges such as US tariffs. He believes tax changes from the latest Union Budget are crucial for maintaining steady growth. However, he also cautioned that while India is likely to maintain around 6.5% growth, this could change depending on global developments.