India's Economic Outlook: FY26 Nominal GDP Growth Projected at 10.4%

In a promising development for India's economy, the upcoming Union Budget is expected to forecast a nominal GDP growth of 10.4% for the fiscal year 2025-26. This projection surpasses the 9.7% growth estimated for FY25, signaling a positive economic trajectory. The anticipated growth is primarily attributed to rising inflation rather than real GDP expansion. Economists suggest that higher Wholesale Price Index (WPI) inflation will be a key factor in lifting the nominal growth. This forecast provides a solid foundation for the government to set the FY26 fiscal deficit target below 4.5% of GDP, aligning with its fiscal consolidation roadmap.
Source: Financial Express