New Delhi, Nov 17
India’s economic outlook for 2026 is set to remain upbeat, with domestic demand emerging as the key driver of growth, a new report said on Monday.
The data compiled by Morgan Stanley said that macro indicators remain stable, giving policymakers ample room to support growth through both monetary and fiscal measures.
According to the report, India’s growth engine will primarily be driven by stronger household spending and rising private investment.
With both rural and urban consumption expected to expand, GDP is projected to grow at 6.5 per cent in FY 2027–28.
Rural demand has already been robust due to healthy farm incomes, while urban demand -- which had been weak -- now shows signs of revival as policy support kicks in.