India's Economic Engine Revs Up: 6.5% Growth Speeds Ahead in FY26: Crisil Report

Crisil, the country's top credit rating agency, projected India's GDP growth to stay at 6.5% in fiscal year 2026 (FY26) on the back of normal monsoons, favorable commodity prices, higher private consumption, and continued growth in private investment. The Reserve Bank of India is likely to reduce repo rates by 50-75 basis points to aid economic growth. Though lower than FY24's 9.2% growth, the rate maintains India as the most rapidly growing major economy. Private consumption is expected to continue to pick up pace, led by resilient farm production and easing food inflation. Downside risks to trade and growth, though, come from a likely hike in US tariffs.

 

Source: Crisil report, March 2025