Robust demand to keep India’s FY26 growth steady

Date:

Share post:

spot_imgspot_img

New Delhi, Oct 26: India’s economy is expected to maintain steady growth in the second half of FY26, driven by robust domestic consumption despite global headwinds, according to an SBI Capital Markets (SBICAPS) report.
While escalating trade tensions and high tariffs—particularly the US imposing 50 per cent duties on Indian exports—pose external challenges, India’s internal demand continues to anchor growth.
Government-led capital expenditure at both central and state levels has increased, supporting investment momentum. To stimulate consumption, recent GST rate adjustments were timed with the festive season.
The Confederation of All India Traders (CAIT) projects festive sales could hit a record ₹4.75 trillion this year, supported by strong auto retail performance during Navaratri.
Globally, SBICAPS described trade conditions as uncertain, calling tariffs the “new abnormal.” Chinese exports to the US dropped 33 per cent in August 2025 year-on-year, though overall exports rose 4.4 per cent, indicating supply chain realignments. Inflationary pressures persist, gradually affecting consumers.
The report also noted a shift in the global financial order, with central banks now holding more gold than US.
Treasuries for the first time in 30 years. Although no alternative to the dollar has emerged, interest in the yuan and digital currencies is rising. SBICAPS cautioned that the global reallocation of investments—especially in artificial intelligence—may create asset bubbles.Domestically, RBI’s relaxed lending norms have boosted credit, with the credit-deposit ratio surpassing 80 per cent in FY26. (IANS)

spot_imgspot_img

Related articles

England end India’s 1,605-day reign at top of T20I Rankings

Southampton, July 12: England have replaced reigning T20 World Cup champions India as the world’s No. 1-ranked men’s...

Experts tear into Gambhir, Iyer as India face heat after England humiliation

Southampton, July 12: India’s humiliating 4-0 T20I series defeat to England has sparked widespread criticism from several former...

Jos Buttler breaks Dhoni’s long-standing sixes record

Southampton, July 12: England wicketkeeper-batter Jos Buttler etched his name into the record books on Saturday by surpassing...

Prince replaces Harshit for England ODIs

Birmingham, July 12: Young pacer Harshit Rana and veteran spinner Varun Chakravarthy have been ruled out of competitive...