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India growth outlook remains strong despite tariff risks and inflation shifts
India’s FY26 growth outlook stays robust as easing inflation and rate cuts support demand, though global risks and trade uncertainty remain key watchpoints.
India’s economy is projected to grow 7.4% in FY26, supported by domestic demand and investment momentum, despite global trade headwinds. December inflation rose to 1.33%, prompting the Reserve Bank of India to cut policy rates to 5.25%. Economists noted easing price pressures and supportive monetary conditions, but warned that external shocks and commodity volatility could influence nominal GDP growth and fiscal planning.