New Delhi, Sep 23
Riding on robust domestic demand, Goods and Services (GST) rate rationalisation and income tax reforms, India's GDP growth is set to hold steady at 6.5 per cent this fiscal (FY26), a report by S&P Global said on Tuesday.
The report expects domestic demand to remain strong, supported by a largely benign monsoon season, cuts in the income and the GST tax and accelerating government investment.
“GDP growth in the June quarter was better than we expected at 7.8 per cent,” according to the S&P Global ‘Q4 Asia Pacific Economic Outlook’.
For India, “we have revised our inflation forecast down to 3.2 per cent for this fiscal year after a sharper than expected decrease in food inflation".
This leaves room for further monetary policy adjustments and we anticipate a 25 bps rate cut by the Reserve Bank of India (RBI) this fiscal year.