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Jeet B Bhayani (SEBI RA)

6th Jul 2025 · SEBI-Registered Analyst

CII predicts that India's gross domestic product (GDP) growth in fiscal year 26 will be between 6.4 and 6.7% due to robust demand.

According to Mr. Rajiv Memani, President of the Confederation of Indian Industry, the Indian economy is expected to expand by 6.40–6.70% in FY26, largely due to strong local demand. During his first press conference since taking office, he emphasized significant growth drivers such a positive monsoon prediction, increased liquidity as a result of the recent Reserve Bank of India's (RBI) Cash Reserve Ratio (CRR) reduction, and a decrease in benchmark interest rates. The RBI freed up Rs. 2,50,000 crore (US$ 29.24 billion) into the banking system last month to encourage lending to productive industries by reducing the CRR by 100 basis points. Furthermore, the policy repo rate was lowered by 50 basis points, bringing it to 5.50%. In answer to a question regarding the economic forecast for FY26, he said that growth is anticipated to be between 6.40 and 6.70%, adding that geopolitical instability and external trade risks continue to be major negative considerations. But he stressed that the upside potential from robust domestic demand offsets these dangers. These considerations, taken as a whole, imply a steady growth trajectory, according to the Confederation of Indian Industry (CII). Overall, his presentation showed that growth is balanced, with geopolitical risks on the downside and strong domestic consumer demand bolstering the economy's growth.

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