India’s economy is expected to expand between 6.7% and 6.9% in FY26, supported by strong domestic demand, steady policy reforms, and a rebound in private investment, consultancy firm Deloitte said on Thursday. The forecast was revised upward from 6.5% earlier, reflecting stronger momentum in consumption and capital spending.
Deloitte’s latest India Economic Outlook report highlighted that moderating inflation, improving rural sentiment, and structural reforms such as the proposed GST 2.0 will help sustain growth. Private investment is also expected to rise as businesses prepare to meet robust demand, particularly following a strong festive quarter boosted by GST rate cuts and higher spending.
Economist Rumki Majumdar noted that healthy performance in the first and third quarters would likely drive annual growth, with potential trade deals with the US and EU further lifting investment sentiment. However, Deloitte cautioned that global challenges—such as trade tensions, supply disruptions, and elevated borrowing costs—could weigh on momentum. Other agencies, including the World Bank, Fitch Ratings, and the Reserve Bank of India, have also projected growth around 6.7–6.9%, citing resilient demand and investment strength.
