New Delhi, Nov 18
India’s economy is expected to grow 7.2 per cent in fiscal 2026, driven by rate cuts, regulatory measures, strong monsoon, government capex and surplus liquidity, a report said on Tuesday.
The central bank’s support is necessary for foreign exchange and bond markets, via open market operations and through ongoing secondary market purchases, it noted.
The bank forecasted the current account deficit to remain benign, close to - 0.9 per cent of GDP in FY26 and - 1 per cent in FY27.
The government will meet the FY26 fiscal deficit targets amid recent sovereign rating upgrade, fiscal health and moderation in public debt levels, the report said