The Union Budget 2026 is likely to set 8.5-9% growth for next year and increase capital expenditure to Rs 12-12.2 lakh crores, said Sonal Badhan, Economist at Bank of Baroda.
The Reserve Bank of India (RBI) is expected to maintain the policy rate unchanged in the current Monetary Policy Committee (MPC) meeting, with a rate cut of 25 basis points (bps) being seen as a positive surprise, according to Bank of Baroda Economist Sonal Badhan.
The Centre's decision to rationalise GST rates to two slabs - 5% and 18%, applicable from September 22, 2025, is expected to boost the country's GDP by 0.2-0.3% in the financial year 2025-26, according to Bank of Baroda economist Sonal Badhan.
Foreign capital inflows into India are likely to accelerate following S&P's recent credit rating upgrade, which is also expected to lower borrowing costs for the country, said Sonal Badhan, Economist at Bank of Baroda (BoB).
Despite the fresh headwinds from elevated U.S. tariffs, India's strong domestic economic fundamentals are expected to support foreign direct investments (FDI) in the country, according to Sonal Badhan, Economics Specialist at Bank of Baroda.
According to Bank of Baroda economist Sonal Badhan, the fiscal deficit target for FY24 is expected to be achieved at 5.9 per cent, with potential risks from lower-than-anticipated nominal GDP growth and higher expenditure.