New Delhi, July 28
The first quarter of FY26 presents a picture of resilient domestic supply and demand fundamentals and with inflation remaining within the target range and monsoon progress on track, the domestic economy enters the second quarter of FY26 on a relatively firm footing, Finance Ministry’s ‘Monthly Economic Review for June 2025’ said on Monday, adding that the economy has the look and feel of "steady as she goes" as far as the current fiscal (FY26) is concerned.
India’s macroeconomic fundamentals have remained resilient. Aided by robust domestic demand, fiscal prudence and monetary support, India appears poised to continue as one of the fastest-growing major economies, "with various forecasters, including S&P, ICRA, and the RBI's Survey of Professional Forecasters, projecting GDP growth rates for FY26 in the range of 6.2 per cent and 6.5 per cent", the monthly document emphasised.
India's financial markets have demonstrated notable resilience, primarily driven by strong domestic investor participation. This resilience is further underpinned by the robust health of the banking sector, as banks have strengthened their capital and liquidity buffers while improving their asset quality.
"Reflecting these improvements, the GNPA ratio and the NNPA ratio of the scheduled commercial banks are at a multi-decade low of 2.3 per cent and 0.5 per cent, respectively, complemented with strong earnings," the report said.