New Delhi, Dec. 23 -- India's Union Budget 2026 is expected to play a critical role in strengthening the foundations for sustained medium-term growth by leveraging resilient domestic demand, sustaining public capital expenditure, and maintaining fiscal credibility, noted a report by EY India, titled "EY Economy Watch December 2025."

With global uncertainties persisting, the report underlines that "going forward, India may have to continue to rely on its resilient domestic demand to support growth," noting that domestic drivers remain the primary anchor as "the contribution of net exports to real GDP growth" is expected to remain negative in the near term.

It adds that, alongside the RBI's accommodative stance, "one can look forward to a...