New Delhi, July 21 || A Crisil report on Monday projected India’s gross domestic product (GDP) to grow at 6.5 per cent this fiscal (FY26), supported by improving domestic consumption, among other positive indicators.
The Crisil Intelligence’s near-term outlook report suggested US tariff-related global uncertainty as the top risk to India’s growth. “However, growth is expected to be supported by improving domestic consumption driven by an above-normal monsoon, income tax relief and the RBI MPC’s rate cuts,” the report mentioned.
GDP growth accelerated to 7.4 per cent on-year in the fourth quarter of last fiscal from 6.4 per cent in the previous quarter. Overall, GDP grew 6.5 per cent last fiscal (FY25).
Consumer Price Index (CPI) inflation slid to 2.1 per cent in June, the lowest in 77 months, as food inflation turned negative.
“Based on the inflation trajectory, prediction of an above-normal monsoon, and the expectation of soft global oil and commodity prices, we expect CPI inflation to soften to 4 per cent on average this fiscal from 4.6 per cent last fiscal,” the report mentioned.
The report expects one more RBI repo rate cut this fiscal, and a pause thereafter.