India’s economy set for steady H2 FY26 growth as consumption and cap-ex hold firm

A report by SBI Capital Markets (SBICAPS) projects India’s growth in the second half of FY26 will be supported by strong domestic consumption, robust festive-season demand and elevated government capital expenditure. Despite global trade tensions and elevated U.S. tariffs weighing on exports, India’s internal demand and infrastructure push are viewed as stabilising pillars. Analysts note that while external risks persist, the domestic growth engine remains intact, and key sectors such as auto and retail are expected to benefit ahead of the year-end.