India’s economy is poised to grow at a healthy 6.5% in FY26, withstanding global geopolitical challenges, according to Sanjiv Puri, President of the Confederation of Indian Industry (CII).
In an interview with PTI, Puri highlighted the resilience of the Indian economy, crediting a strong macroeconomic foundation, improving private investment, and easing inflation as key growth enablers.
“We are looking at 6.5%. This number is achievable, fundamentally because we’re starting from a position of strength,” said Puri.
Growth Drivers: Investment, Reforms & Resilience
Private investment is gaining traction across core sectors such as energy, transportation, metals, chemicals, and hospitality, signaling growing economic confidence. Puri noted that despite geopolitical uncertainties, the investment environment remains optimistic, though some caution may persist.
Several recent policy moves are also contributing to momentum:
- Lower interest rates
- Easing inflation
- Personal income tax concessions effective from April 1
- Robust public sector investment in the latter half of FY25
Trade in a Fragmenting World :
Addressing rising global protectionism and proposed tariff hikes by key economies like the US, Puri emphasized the urgency of bilateral trade pacts with strategic partners such as the US and EU.
“We must engage in trade agreements mutually beneficial and aligned with national interest,” he stated, advocating for a three-tier tariff structure to improve competitiveness in select sectors.
Focus on Domestic Strengths
Puri also stressed the importance of accelerating reforms in agriculture, climate adaptation, and domestic productivity to sustain long-term growth.
He pointed out encouraging signs from the rural economy, noting that while urban consumption has remained flat, it is expected to rebound in the coming quarters.
“The domestic drivers of growth must be our priority. They can buffer the economy against external volatility,” Puri said, adding that further interest rate cuts could further support growth.
