India’s economic growth expected to accelerate, GDP growth may reach 7.4 percent in fiscal year 2026

New Delhi, 30 December. India’s economic growth is expected to accelerate in the current financial year 2025-26 and the country’s GDP growth is estimated to be 7.4 percent, which is higher than the estimated 6.5 percent growth in the previous financial year 2024-25. According to the ICRA Limited report released on Tuesday, economic growth may remain strong in the first six months of the current financial year. During this period, GDP growth can reach around 8 percent.

ICRA report: The pace of growth may slow down a bit in the second half of the year

However, the pace of growth may slow down slightly in the second half of the year and may fall below 7 percent. The report said external challenges, especially weak exports, could further weigh on the economy unless a trade deal with the US is reached. According to ICRA, economic activity remained good in the third quarter of FY 2026. People’s purchasing has increased due to increase in demand during the festive season and reduction in GST rates.

mining, Estimate of increase in demand for construction and electricity

The report states that demand for mining, construction and electricity may increase in the coming months. Earlier there were some problems in these areas due to rain, but now the situation is expected to improve. At the same time, the decline in exports may increase further in the second half of the year, which may put pressure on economic growth.

With strong policy support from the government 2025 Economic growth in India better than expected

ICRA Chief Economist Aditi Nair said that economic growth in 2025 has been better than expected. The reason for this was the strong policy support of the government. He said that steps like relief in income tax, change in GST rates, reduction in repo rate by a total of 1.25 percent (125 basis points) and increasing liquidity in the market supported the demand. He also said that due to low inflation, expenditure pressure on families reduced and agriculture benefited from good monsoon rains. However, he warned that concerns remain on the external front and if a trade deal with the US is not reached soon, it could impact growth in the future.