India's FY26 Gross Domestic Product (GDP) growth likely to be 6.4-6.7% amid strong demand: Confederation of Indian Industry (CII)

The Indian economy is projected to grow by 6.40-6.70% during FY26, supported primarily by robust domestic demand, according to the President of the Confederation of Indian Industry, Mr. Rajiv Memani. Speaking at his first press conference since assuming the role, He highlighted key growth drivers including a favourable monsoon forecast, increased liquidity resulting from the Reserve Bank of India's (RBI) recent Cash Reserve Ratio (CRR) reduction, and a cut in benchmark interest rates. Last month, the RBI lowered the CRR by 100 basis points, releasing Rs. 2,50,000 crore (US$ 29.24 billion) into the banking system to boost lending to productive sectors. Additionally, the policy repo rate was reduced by 50 basis points to 5.50%.
Responding to questions on the economic outlook for FY26, he stated that growth is expected to fall within the 6.40-6.70% range, acknowledging that external trade risks and geopolitical uncertainty remain significant downside factors. However, he emphasised that these risks are balanced by the upside potential from strong domestic demand. From the Confederation of Indian Industry (CII)’s perspective, these factors collectively suggest a stable growth trajectory. Overall, his presentation indicated that risks to growth are evenly poised, with geopolitical challenges on the downside and resilient internal consumption supporting the economy’s expansion.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.