India's Economy Soars to 7.4% in FY26, Investment Fuels Strong Recovery

• India's economy projected to grow 7.4% in FY26, up from 6.5% in the previous fiscal year, driven by robust investment and manufacturing.
• Investment expanded 7.8%, reaching 33.8% of GDP, while manufacturing grew 7% and the tertiary sector contributed 51% to the economy.
• Agriculture, mining, construction, and electricity showed slower growth, with mining contracting 0.7%.
• Government policy, including income tax relief and GST rationalization, supported consumption despite global trade uncertainties.
• RBI's 125 basis point rate cuts eased borrowing costs; upcoming GDP series revision (2022-23 base) will impact future estimates.

Why It Matters: India's economy rebounded strongly in FY26, fueled by investment and policy support, despite some sectoral weaknesses.