New Delhi, Oct. 26 -- India's economic growth in the second half of the current financial year is expected to remain steady, with strong domestic consumption likely to cushion the slowdown, according to a report by SBI Capital Markets (SBICAPS). The report noted that while global uncertainties and trade tensions persist, India's internal demand continues to provide stability to the economy.

The report highlighted that with India facing steep 50 per cent tariffs from the United States, policymakers are pushed to rely more on domestic growth levers. Both the Union and State governments have increased their capital expenditure in the year-to-date FY26 period, which is expected to show up in higher gross fixed capital formation.

Realising t...