Overview

• ICRA projects India’s real GDP growth for FY2025-26 at over 6.5%, with real GVA expansion set to exceed 6.3%.
• Consumer Price Index inflation is expected to top 4.2% while the Wholesale Price Index rises above 2.7% in the current fiscal.
• The Centre’s capital expenditure is budgeted to climb 10.1%, even as the fiscal deficit widens to 4.4% of GDP.
• Rural demand is likely to remain strong thanks to Rabi season cash flows and above-normal reservoir levels.
• The current account deficit is forecast at 1% of GDP as merchandise exports stay subdued and services exports gain momentum.