India’s economy is projected to grow strongly in FY26, driven by robust domestic demand, easing inflation, and recent reforms, the Finance Ministry said in its latest monthly review released Monday.

BulletsIn

• Finance Ministry expects FY26 growth to stay strong despite weak global trade.
• Key drivers: domestic demand, good monsoon, and lower inflation.
• IMF and RBI revised growth forecasts upward to 6.6% and 6.8%.
• India’s trade remains resilient with strong services exports.
• Merchandise exports diversifying amid new trade talks with the US.
• FDI inflows rising, making India a top investment destination.
• GST reforms and festive demand boosting consumption.
• Repo rate held at 5.5%; headline inflation forecast lowered to 2.6%.
• Agriculture stable; cereals and pulses output up despite weather damage.
• Continued reforms, including GST 2.0 rollout, expected to sustain growth momentum.