The Indian economy is expected to grow at 6.7 per cent in the upcoming fiscal 2026-27, as compared to the central government's First Advance Estimates of 7.4 per cent for the current fiscal 2025-26, according to a report by Crisil.
Real GDP is estimated to attain a level of Rs 201.90 lakh crore in FY26, against the Provisional Estimates (PE) of GDP for FY25 of Rs 187.97 lakh crore, it said. Further, the data said the Nominal GDP is estimated to grow at 8% in FY 2025-26.
Consumption in India's domestic economy is expected to continue outpacing capital expenditure (capex) in 2026, supported by a fiscal policy pivot towards consumption and a revival in credit, even as corporate investment sentiment remains cautious, according to a report by Nuvama.
India's fiscal position during the April-November period of FY26 indicates that concerns over lagging tax revenues and adherence to the full-year budget targets have resurfaced, even as the government continues to prioritise capital expenditure-led growth, as per a report by Union Bank of
The Central government is expected to meet its fiscal deficit target for FY26 by cutting back on capital expenditure to offset potential shortfalls in income tax and GST collections, according to a report by Goldman Sachs.
According to provisional data released by the government, the total Gross GST revenue touched Rs 1,70,276 crore in November 2025, a 0.7% increase over the Rs 1,69,016 crore collected in November 2024.
The report highlighted that its expectation is driven mainly by continued downside surprises in headline Consumer Price Index (CPI) inflation. "On monetary policy, we expect the RBI to ease rates 25bp in the Dec-25 policy meeting, with a terminal policy rate of 5.25 per cent".
The report forecasts real GDP growth of 6.8 per cent in FY26 and 6.5 per cent in FY27-28, driven primarily by an uptrend in household consumption, improving urban sentiment, and a broadening investment cycle.
The Federation of Indian Chambers of Commerce and Industry (FICCI) has set out its key expectations from the Union Budget 2026-27, calling for faster tax appeals, simpler TDS rules, clarity for cross-border supply chains and targeted customs facilitation to cut delays and disputes.
Reserve Bank of India (RBI) Governor Sanjay Malhotra said that fiscal consolidation and strong coordination between monetary and fiscal policies have played a key role in helping India manage inflation while supporting economic growth during challenging times marked by tariffs and global unc
India's Goods and Services Tax (GST) collections continued their upward trajectory in September 2025, rising by 9.1 per cent to Rs 1,89,017 crore compared to Rs 1,73,240 crore in the same month last year.