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India’s economic growth will likely surprise on the upside in financial year 2025-26, according to Vaibhav Sanghavi, chief executive officer of ASK Hedge Solutions.
The government is focusing on both investment and consumption, which will support the economic growth in the upcoming quarters, he said on Wednesday, in a televised interaction with NDTV Profit.
India’s gross domestic product growth moderated to a seven-quarter low of 5.4% in July-September. Although GDP growth improved to 6.2% in the subsequent quarter, the pace of growth remained slow as compared to the recent highs.
Analysts attributed the slowdown in India’s economic growth to prolonged monetary tightening and a fall in India Inc.’s earnings growth. Also, persistent inflation bit into citizens’ disposable income, which adversely impacted consumption in the country.
Sanghavi, who sees the potential of a surge in economic growth in fiscal 2026, said that the current government has always been focused on investments. “Now, welfare schemes are added to boost consumption. Tax cuts will increase the disposable income,” he said.
Recently, Moody’s said that India’s GDP will increase past 6.5% in fiscal 2026. Tax cuts and increased capital expenditure from the government will support this pace of economic growth, as per the ratings agency.
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