Despite the geopolitical opposite winds, the Ministry of Finance remains confident that India’s GDP growth will remain in the planned fork of 6.3-6.8% for financial year 26, according to sources from the ministry that declared to Business Today TV.
Describing current challenges as a “temporary setback”, managers are optimistic that the bilateral trade negotiations to come with the United States will help to mitigate the impact.
Although the government has recognized that prices could alleviate demand, it kept hope that world energy prices and tax reductions in the United States will help compensate for the effect.
Asked about the potential incentives for the industries affected by the drop in exports, the manager noted that the MPMs are the most affected because they do not have the capacity to absorb losses, while large companies can undergo pressure for a while. Although no immediate rescue measure is planned, the government will soon meet exporters to assess their concerns.
Government’s confidence also stems from its capex prospects. Despite a sharp drop in the use of capital expenditure during the first half of fiscal year, it plans to exceed the revised CAPEX objective of Rs 10.18 Lakh crores for the financial year. The objective was revised from RS 11.1 Lakh crosses in the Union 2025-26 budget. For fiscal year 26, the government allocated Rs 11.21 Lakh crosses to capital expenses.
“The tax reductions announced in the budget and the increase in the CAPEX will help us for exercise 26,” shared a official, strengthening government optimism in maintaining economic momentum.
The economic survey deposited in Parliament on January 31, the growth of India’s GDP at 6.3-6.8% during fiscal year 26.
