Growth May Rebound To 7% In FY26

New Delhi: India’s economic growth is expected to rebound to seven per cent in 2025-26, despite the global uncertainties, primarily due to domestic policies, according to an Axis Bank research report released on Wednesday. The report states that a cyclical rebound will push India back to a higher growth path.

“The loss in momentum during the first half of 2024-25 for the Indian economy, in our view, is cyclical, and due to unintended fiscal and monetary tightening; the latter due to a focus on macro stability risks, which hurt credit growth. Fiscal spending is already rising and the CRR cut by the RBI should ease growth headwinds due to shortage of money,” the report points out.

The report is of the view that India’s domestic political stability will push up the growth rate despite the turbulent global economic environment.