Economic Growth Forecast

India's economic growth is expected to slow down to 3-4% in March 2026, according to Icra, amid global economic uncertainties and rising inflation. However, the country's strong domestic demand and government initiatives are expected to support economic growth. The services sector continues to act as a "high-growth, low-volatility anchor," with medium-term growth projected at 7-8% ² ³.

The International Monetary Fund (IMF) has upgraded India's FY26 GDP growth forecast to 7.3%, citing strong momentum. The World Bank has also revised its forecast upwards to 7.2%. The government's focus on promoting domestic manufacturing and increasing investments in infrastructure is expected to drive growth. The Economic Survey 2026 projects real GDP growth at 7.4% for FY26, with the services sector driving growth