India’s GDP is expected to grow by 6 to 6.5 percent in FY26, as per a fresh report from UBS. This strong growth is thanks to steady domestic demand, low inflation, and a government that is spending big on infrastructure. Despite global uncertainty, India is still holding strong.
In fact, India grew 7.4 percent in the January to March quarter of FY25. That’s the best growth we saw in the entire year. Just a quarter earlier, GDP was growing at 6.2 percent. So, yes, India is picking up speed.
Experts say the real drivers behind this boom are simple—people are spending more, the government is building more, and we don’t rely too much on exports. This keeps India safe from global trade shocks.
The UBS report points out that services now make up 47 percent of India’s total exports. That’s huge. Unlike many other Asian countries, we’re not too dependent on goods trade, which is more affected by global events. So, even if the world slows down, India keeps moving.
The report also adds that India’s central bank might cut interest rates again—by 25 to 50 basis points—if inflation stays low. That would be good news for loans, investments, and small businesses.
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There’s more good news. The government may cut fuel prices just before Diwali and the Bihar elections. This could put more money in people’s pockets and boost spending even more.
On top of that, the government is expected to fast-track its capital expenditure targets. This simply means more money spent on roads, railways, and other public projects. That also creates jobs and pushes the economy forward.
India’s Chief Economic Advisor, Dr. V. Anantha Nageswaran, said the country is in good shape. Even with a shaky global scene, India is standing strong.
The International Monetary Fund (IMF) agrees. In its April 2025 outlook, it said India will grow by 6.2 percent in 2025 and 6.3 percent in 2026. That keeps us at the top—once again the fastest-growing major economy in the world.
So yes, India’s GDP story is not just solid—it’s proud. While other countries are slowing down, India is gearing up for another strong year. The numbers are not just good—they show that the Indian economy is ready to lead.
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