India’s GDP to Grow at 6.5% in FY26: EY Report

The Indian economy is projected to grow at 6.5% in the fiscal year 2025-26 (FY26), according to the latest EY Economy Watch report. The report underscores the importance of a well-balanced fiscal strategy that fosters human capital development while ensuring fiscal discipline to drive long-term economic growth.

For the current fiscal year (FY25), spanning April 2024 to March 2025, EY has projected India’s real GDP growth at 6.4%. The report also emphasizes the need for policy realignment to support the nation’s vision of Viksit Bharat (Developed India).

Revised national accounts data from the National Statistical Office (NSO), released last month, estimates India’s real GDP growth at 7.6% in FY23, 9.2% in FY24, and 6.5% in FY25. The EY report suggests that continued fiscal prudence and targeted investments in key sectors could further bolster economic resilience and growth.

As India maintains strong economic momentum, experts believe that structural reforms, increased infrastructure spending, and digital transformation will play a crucial role in sustaining robust growth in the coming years.