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Crisil Projects India’s GDP Growth at 6.5% for FY26.

Economy Business | Dated: 03 Jun 2025

In May 2025, Mumbai (Maharashtra) based Crisil Limited, a global rating agency, projected India’s Gross Domestic Product (GDP) growth at 6.5% for the Financial Year 2025-2026 (FY26). The forecast cites improving domestic consumption, supported by healthy agricultural growth, easing inflation, expected rate cuts by the Reserve Bank of India (RBI), and income tax relief announced in the Union Budget 2025-26.

🎯 Key Highlights:

  • - The India Meteorological Department (IMD) forecasts an above-normal Southwest Monsoon (106% of Long-Period Average) in FY26, likely to boost agricultural output and help control inflation.
  • - Crisil Intelligence expects global crude oil prices to average USD 65-70 per barrel in FY26, down from USD 78.8 per barrel in FY25.

💡 Other Important Facts:

  • (i) Crisil expects the Monetary Policy Committee (MPC) to further cut the repo rate by 50 basis points (bps) in FY26, following a similar reduction in FY25. This is anticipated to support credit growth and stimulate domestic demand.
  • (ii) Despite strong domestic fundamentals, Crisil highlighted downside risks from global headwinds such as the USA-led tariff war, geopolitical tensions, and supply chain disruptions.
  • (iii) The Reserve Bank of India (RBI), in its 2024-25 Annual Report, also projected India’s GDP growth at 6.5% for FY26, reaffirming India’s position as the fastest-growing major economy.

📚 Test Your Knowledge:

Recently, Crisil forecasted India’s GDP growth for FY26 at what percentage?

Correct Answer: 6.5%

🚀 Quick Recap: