India's Economy Set For Strong FY26 Growth With Push In Global Economic Standing
India's economy in Purchasing Power Parity terms now stands at $15 trillion—more than half the size of the United States economy
India's economy is poised for robust growth in the financial year 2025–26, with the Reserve Bank of India (RBI) projecting a real GDP expansion of 6.7 per cent. Backed by solid domestic demand, high capital expenditure, and improved agricultural prospects, the country continues to cement its position as one of the world's fastest-growing major economies.
According to a report published in The Hindu Business Line, the RBI's quarterly GDP growth forecasts for FY26 stand at 6.7 per cent for Q1, 7.0 per cent for Q2, and 6.5 per cent each for Q3 and Q4. The central bank attributes this optimism to strong Rabi crop output, healthy reservoir levels, and a continuing recovery in manufacturing and services.
The inflation outlook is also improving. CPI inflation is projected to average 4.8 per cent in FY25, with a further decline to 4.2 per cent anticipated in FY26. This moderation is expected due to easing food prices and effective monetary policy actions, helping maintain consumer purchasing power and support macroeconomic stability.
A key contributor to this positive outlook is the rebound in household financial savings, which had declined in previous years. A Business Standard report notes that these savings have started to improve, reflecting increased disposable incomes and more prudent financial behaviour among Indian households. This resurgence in savings is likely to support consumption-led growth and provide a buffer against future economic shocks.
On the global stage, India's economic footprint continues to grow. As highlighted by NITI Aayog Vice-Chairman Suman Bery, India's economy in Purchasing Power Parity (PPP) terms now stands at $15 trillion—more than half the size of the United States economy. 'This is a remarkable indicator of the real economic weight India holds globally," Bery was quoted as saying.
This confidence in India's growth trajectory was shared by Chief Economic Adviser V Anantha Nageswaran at the Confederation of Indian Industry's (CII) Annual Business Summit. Speaking to Mint, he emphasised that India's growth continues to be broad-based and supported by structural reforms and resilient macroeconomic fundamentals.
Nageswaran advised Indian industry to be prepared to deal with a stronger currency in the coming years by becoming more competitive through productivity improvements.
From rising household savings to growing global stature and strong FDI flows, India's economic momentum appears not only sustained but also accelerating. With supportive fiscal policies, robust agricultural performance, and growing investor interest, FY26 could mark another milestone in India's journey toward becoming a global economic powerhouse.
Watch India Pakistan Breaking News on CNN News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated!
First Published:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
16 minutes ago
- Time of India
Air India's budget carrier delayed engine safety order, forged records: Memo
India's aviation watchdog reprimanded Air India 's budget carrier in March for not timely changing engine parts of an Airbus A320 as directed by European Union's aviation safety agency, and falsifying records to show compliance, a government memo showed. In a statement, Air India Express told Reuters it acknowledged the error to the Indian watchdog and undertook "remedial action and preventive measures". Air India has been under intense scrutiny since the June Boeing Dreamliner crash in Ahmedabad which killed all but one of the 242 people onboard. The world's worst aviation disaster in a decade is still being investigated. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 years of commitment to sustainability and innovation Acciona The engine issue in the Air India Express' Airbus was raised on March 18, months before the crash. But the regulator has this year also warned parent Air India for breaching rules for flying three Airbus planes with overdue checks on escape slides, and in June warned it about "serious violations" of pilot duty timings. Air India Express is a subsidiary of Air India, which is owned by the Tata Group . It has more than 115 aircraft and flies to more than 50 destinations, with 500 daily flights. Live Events You Might Also Like: Air India warned for flying Airbus planes with unchecked escape slides The European Union Aviation Safety Agency in 2023 issued an airworthiness directive to address a "potential unsafe condition" on CFM International LEAP-1A engines, asking for replacement of some components such as engine seals and rotating parts, saying some manufacturing deficiencies had been found. The agency's directive said "this condition, if not corrected, could lead to failure of affected parts, possibly resulting in high energy debris release, with consequent damage to, and reduced control of, the aeroplane." The Indian government's confidential memo in March sent to the airline, seen by Reuters, said that surveillance by the Directorate General of Civil Aviation (DGCA) revealed the parts modification "was not complied" on an engine of an Airbus A320 "within the prescribed time limit". "In order to show that the work has been carried out within the prescribed limits, the AMOS records have apparently been altered/forged," the memo added, referring to the Aircraft Maintenance and Engineering Operating System software used by airlines to manage maintenance and airworthiness. The "mandatory" modification was required on Air India Express' VT-ATD plane, the memo added. That plane typically flies on domestic routes and some international destinations such as Dubai and Muscat, according to the AirNav Radar website. The lapse "indicates that accountable manager has failed to ensure quality control," it added/ Air India Express told Reuters its technical team missed the scheduled implementation date for parts replacement due to the migration of records on its monitoring software, and fixed the problem soon after it was identified. It did not give dates of compliance or directly address DGCA's comment about records being altered, but said that after the March memo it took "necessary administrative actions", which included removing the quality manager from their position and suspending the deputy continuing airworthiness manager. The DGCA and the European safety agency did not respond to Reuters queries. Airbus and CFM International, a joint venture between General Electric and Safran, also did not respond. The lapse was first flagged during a DGCA audit in October 2024 and the plane in question took only a few trips after it was supposed to replace the CFM engine parts, a source with direct knowledge said. "Such issues should be fixed immediately. It's a grave mistake. The risk increases when you are flying over sea or near restricted airpsace," said Vibhuti Singh, a former legal expert at the India's Aircraft Accident Investigation Bureau. The Indian government told parliament in February that authorities warned or fined airlines in 23 instances for safety violations last year. Three of those cases involved Air India Express, and eight Air India.
&w=3840&q=100)
Business Standard
17 minutes ago
- Business Standard
Kolhapuri chappal row: PIL filed against Prada over summer collection
A Public Interest Litigation (PIL) has been filed in the Bombay High Court against Italian luxury fashion brand Prada, accusing the company of copying the iconic Kolhapuri chappal design in its latest Spring/Summer 2026 collection, news agency ANI reported. The petitioner has demanded compensation for the artisans and legal protection for India's traditional crafts. The Kolhapuri chappal, a handcrafted leather slipper with cultural roots in Maharashtra and Karnataka, holds a Geographical Indication (GI) tag under the Geographical Indications of Goods (Registration and Protection) Act, 1999. Despite this legal protection, Prada's recently unveiled 'Toe Ring Sandals' — priced at over ₹1 lakh — are said to be a clear derivative of the traditional Kolhapuri design. PIL accuses Prada of overlooking traditional custodians According to the PIL, 'The matter concerns the misrepresentation, cultural misappropriation, unauthorised commercialisation of 'KOLHAPURI CHAPPAL' during an international fashion event held at a Spring/Summer Men's Collection 2026 at Milan, Italy on 22nd June, 2025, where its genuine origin, traditional custodianship and Geographical Indication (GI) status were entirely overlooked.' The petition seeks an injunction, along with compensation and damages for the artisans, citing harm caused to the communities who have preserved this craft for generations. Critics call Prada's quiet gesture 'superficial' In response to widespread criticism, Prada issued a statement acknowledging that its collection was 'inspired by Indian artisans'. However, the petitioners argue that this acknowledgment lacks substance, pointing out that it was not made publicly or directly to the affected artisans, the government, or the GI Registry. 'The Kolhapuri Chappal is the cultural symbol of Maharashtra and has special public sentiments attached with it. The brand has privately accepted that its collection is 'inspired by Indian artisans,' however, this acknowledgement surfaced only after facing widespread backlash... The brand has not yet issued any formal apology along with any damages, compensation and entitled remedy and the statement appears to be merely a superficial attempt to deflect criticism,' the PIL states. Kolhapuri design on Milan runway The controversy erupted after Prada showcased leather sandals resembling Kolhapuri chappals at its Milan Fashion Week show. The sandals, part of the brand's Spring/ Summer 2026 menswear collection, were reportedly priced at ₹1.2 lakh. While Prada has since stated that the design was inspired by Indian craftsmanship, the timing of this admission — after public backlash — has intensified criticism from Indian officials and artisan groups. Kolhapuri chappals, known for their toe-strap design and robust leather craftsmanship, are an integral part of Maharashtra's cultural identity. Their popularity surged in the 1970s after being featured in Bollywood films and has since become a globally recognised symbol of Indian handmade footwear.
&w=3840&q=100)
Business Standard
17 minutes ago
- Business Standard
Sajjan Jindal bats for 'longer term solution' for Indian steel sector
Billionaire industrialist Sajjan Jindal has called for a 'longer-term solution' to ensure the competitiveness of Indian steel in the wake of the uncertainty caused by US tariffs. In his message to shareholders as mentioned in JSW Steel's latest annual report, Jindal said: 'We are navigating a period of change, shaped by an evolving global political and policy landscape. While India remains on a transformative growth path, driving healthy steel demand, the steel industry faces a challenging environment marked by weak global demand and record Chinese steel exports, even as iron ore costs remain relatively elevated.' The chairman and managing director of the company pointed out that uncertainty related to tariffs imposed by the US had caused volatility in global markets. 'Trade barriers have been rising, with various countries either imposing measures or initiating action to protect their steel industries from unfair imports.' 'This is altering global trade flows, with surplus steel finding its way into India, posing significant challenges for Indian steelmakers. India has imposed a 12 per cent safeguard duty on certain steel products for 200 days, based on a preliminary investigation undertaken by the Directorate General of Trade Remedies (DGTR),' he said, adding that a longer-term solution was critical to ensure the competitiveness of Indian steel, create a level-playing field, and allow Indian steelmakers to earn a reasonable return on investments. The comments come at a time when major Indian steel producers are expanding capacity at a frenetic pace. JSW Steel has committed a capital expenditure of Rs 62,000 crore over the next three years to support its goal of achieving 42 million tonnes per annum (mtpa) steelmaking capacity in India by September 2027. The company's domestic installed capacity is 34.2 mtpa, and plans are afoot to take it to 50 mtpa by FY31. On 21 April, the Ministry of Finance announced the imposition of a 12 per cent provisional safeguard duty for a period of 200 days on certain steel products to protect the domestic industry from injury caused by a spike in imports. It came a month after the DGTR, under the Ministry of Commerce and Industry, had recommended a 12 per cent safeguard duty. However, steel prices have remained soft despite the safeguard duty. Tata Steel and Tata group chairman Natarajan Chandrasekaran, while responding to shareholder queries on the market environment at the steel major's annual general meeting (AGM) recently, said that China continues to export about 100 million tonnes (mt) of steel. 'That is definitely affecting the overall steel price not only in global markets but also in India. The Indian government has put a safeguard duty of 12 per cent and the industry obviously was wanting almost double that. But we are happy that the government took the step to put the 12 per cent,' he said, adding that in spite of that, steel prices remained soft. However, he also said that Tata Steel was expected to post better revenues, EBITDA, profits, and cash flow in FY26 compared to FY25 on the back of overall performance, increased capacity, and current spread levels.
