New Delhi, Oct 27
Against a global backdrop characterised by economic and trade policy uncertainty, India’s economy gained momentum in the second quarter of FY26, which is particularly significant, as the US imposed higher tariffs on India in August, according to the Finance Ministry’s monthly report released on Monday.
Various supply-side high-frequency indicators have displayed healthy trends while demand conditions continued to improve with the GST reforms and festive season sentiments spurring consumption. The growth outlook for FY26 remains strong, supported by domestic demand, favourable monsoon conditions, lower inflation, monetary easing, and the positive effects of GST reforms.
Looking ahead, the lower GST rate is expected to support a positive demand outlook by reducing the tax burden on consumers and businesses, stimulating consumption and investment across sectors and boosting employment generation in the economy.