RBI bumps up India's growth forecast for 2025-26
Good news on the economy front: The RBI just raised its GDP growth forecast for FY26 to 7.3%, up from 6.8%.
This comes after a strong July-September quarter, where the economy grew by 8.2%—thanks to people spending more and recent GST tax cuts, which fuelled consumer demand.
What's powering this momentum?
A solid farm sector and lower inflation have boosted rural consumption growth, especially in rural areas.
The GST reforms from September made household goods and durables more affordable, so demand shot up.
Plus, government spending on big projects is helping keep things moving.
India's global upgrade
India is on track to leapfrog Japan and become the world's fourth-largest economy by FY26, says the IMF.
There's even talk of a US-India trade deal that could push growth closer to 8%.
Despite some export hiccups globally, India's services sector is holding strong—and experts think this wave of growth could last into next year.