FX.co ★ Indian GDP Seen Growing 7.4% in FY26

According to a preliminary estimate, India's GDP is anticipated to grow by 7.4% in real terms for the 2026 financial year. This marks a recovery from the previous period's 6.5% growth, solidifying India's position as the fastest-growing economy among the G20 nations. This growth rate surpasses the government's initial projections, which estimated growth to be between 6.3% and 6.8%. Concerns were initially raised about the potential economic impacts of increased tariffs by the United States and reduced imports of affordable oil from Russia. Government consumption saw a significant increase, rising to 5.2% from 2.3% in FY25, while gross fixed capital formation also improved, reaching 7.8% from 7.1%. However, private expenditure experienced a slight deceleration, moving to 7% from 7.2%. Meanwhile, exports grew by 6.4%, slightly higher than the previous growth of 6.3%, but still lagged behind imports, which surged by 14.4% compared to the previous decline of 3.7%.