New Delhi, Dec 30 || India’s economic growth is expected to pick up pace in the current financial year, with GDP projected to grow at 7.4 per cent in FY2026, a new report said on Tuesday.
This would mark an improvement from the estimated 6.5 per cent growth in FY2025, according to a report by ICRA Limited.
The report said economic expansion may remain strong in the first half of FY2026, with GDP growth expected to be around 8 per cent.
However, growth is likely to ease to below 7 per cent in the second half as the impact of a favourable base effect fades.
External challenges, especially weak exports, could also weigh on economic activity later in the year unless a trade deal with the United States is finalised.
ICRA noted that economic activity remained healthy in the third quarter of FY2026, supported by a festive-season demand boost following GST rate cuts.