Driven by GST & tax relief, India’s FY26 growth to be above 6.8%

• India’s economic growth for FY26 is expected to exceed 6.8%, driven by a boost in consumption from GST rate cuts and income tax relief.
•  India recorded 7.8% GDP growth in Q1 FY26, led by strong performance in agriculture, trade, hospitality, finance, and real estate sectors.
• The previous highest growth rate was 8.4% in Q4 FY24.
• India continues to be the world’s fastest-growing major economy, with China growing at 5.2% in the same period.
•  Growth could get an additional push if the bilateral trade agreement (BTA) with the US is finalised soon.
• The US currently imposes a 50% tariff on Indian goods, including a 25% penalty for importing Russian crude oil.
•  A resolution on the trade front, would add an upward bias to India’s growth outlook.