Crisil Raises India's FY26 GDP Forecast to 7%; RBI Cuts Rates, Cites 'Goldilocks Period'

• Crisil forecasts India's GDP to grow 7.0% in FY26, raising its FY25 projection by 50 basis points to 6.5%.
• Domestic consumption, supported by benign inflation and tax relief, is expected to drive India's economic growth.
• The RBI raised its full-year GDP growth projection to 7.3% and cut policy rates by 25 basis points to 5.25% in December.
• Crisil expects CPI inflation to soften to 2.5% in FY26 from 4.6% in FY25, while RBI forecasts 2.0% for 2025-26.
• US tariffs pose a risk to India's exports, and Crisil projects crude oil prices to average $60-65 per barrel in 2026.

Why It Matters: Strong Indian economic growth and RBI rate cuts could boost prosperity.