India's economy to grow at 6.2-6.5% rate in FY26: Report
India's economy is expected to grow steadily at around 6.2-6.5% in 2025-26, thanks to strong local spending, manageable inflation, and a good monsoon helping farms.
Manufacturing, construction, and services are all seeing a boost—especially with better crop sowing and more water for rural areas.
Some worries remain about the growth
There are some worries: a slowdown in the US or new trade tariffs could hurt exports.
Even though interest rates have dropped by 1%, banks aren't lending much and companies prefer raising money through bonds instead of loans, which means private investment isn't growing as fast.
Demand and momentum are expected to keep going strong
Despite global ups and downs, top agencies still expect solid growth for India next year.
The government's big Employment Linked Incentive scheme is aiming to create over 3.5 crore jobs (mostly in manufacturing) over two years, while steady policies are set to keep demand—and momentum—going strong into FY26.