Despite global economic uncertainties, India's economic growth remains robust. The Reserve Bank of India (RBI) projects a real GDP growth of 6.5% for the fiscal year 2025-26. This makes India the fastest-growing major economy, supported by strong macroeconomic fundamentals and a resilient financial sector.
Several factors contribute to this positive outlook. These include a revival in consumption demand, the government's focus on capital expenditure, and healthier balance sheets of corporations and banks. The agriculture sector is also expected to perform well, boosted by forecasts of an above-normal southwest monsoon.
However, some challenges remain. Global headwinds, such as financial market volatility and geopolitical tensions, pose downside risks. The RBI's projection considers these factors, describing the outlook as “evenly balanced”. Despite these uncertainties, India's economy is well-positioned for continued growth in 2025.