BS EDIT: Will global headwinds stall India’s FY26 growth?

By Business StandardPublished On Mar 31, 2025

Growth stabilises in FY25

India's economy grew 6.5 per cent in FY25. FY26 is expected to see similar growth, with RBI projecting 6.7 per cent

External risks cloud FY26

Talks with the US continue, but reciprocal tariffs may begin April 2—posing trade risks

Why US policy matters

Protectionism could hit global trade, weaken investment, and affect India’s growth

Capital inflows slow

Foreign portfolio inflows fell to $2.7 billion in FY25 from $41 billion in FY24

Macros remain steady

Low inflation, a 4.4 per cent fiscal deficit target, and stable external accounts offer support

Time for bold reforms

To raise growth beyond 6.5 per cent, India must accelerate economic and governance reforms