Mumbai, Dec. 8 -- India's economy is projected to grow at 7% or above in FY26, underpinned by strong domestic demand, low inflation, GST rate cuts and an 8.2% GDP surge in the July-September quarter, which marked a six-quarter high and reinforced India's status as the fastest-growing major economy.

RBI has cut the repo rate by 25 bps, raised its GDP growth forecast to 7.3% and lowered inflation expectations to 2%, even as higher US tariffs, a wider trade deficit and a rupee that has weakened about 5% in 2025 after breaching 90 per dollar pose external risks, prompting the government to prioritise customs simplification as the next big reform before Budget 2026.

Published by HT Digital Content Services with permission from Capital Market...