New Delhi, Feb. 3 -- India's economy is expected to grow at 6.5 per cent in the financial year 2025-26 (FY26), slightly higher than the 6.4 per cent growth estimated for the ongoing fiscal year (FY25), according to a report by Crisil.

The report suggests that lower inflation and expected rate cuts by the Reserve Bank of India (RBI) will support growth, provided there are no major global shocks and India experiences a normal monsoon.

It said "Lower inflation and the RBI's rate cuts are expected to lift growth next fiscal, assuming a normal monsoon and lower crude oil prices".

Crisil's outlook highlights that while government spending will continue to support economic growth, the overall fiscal impulse will reduce as fiscal consolidation...