Amidst this uncertain global outlook, India’s economy continues to gain momentum, said the report. Demand conditions across rural and urban India strengthened with the implementation of the GST reforms and the festive season, coinciding with industry reports signalling robust growth in sales, particularly in sectors such as automobiles, it said.
On the supply side, the manufacturing and services sectors expanded “healthily”. Taking into account the higher-than-anticipated growth in Q1 FY26 and steady upward trends visible in Q2 FY26, India’s growth forecasts for FY26 have been upgraded, said the government.
The IMF now forecasts real GDP growth of 6.6 per cent, while the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) expects real GDP to increase by 6.8 per cent, indicating upward revisions of 20 and 30 basis points, respectively