India's Macroeconomic Fundamentals Remained Resilient In FY26: Nirmala Sitharaman
The ministry further said that India appears poised to continue as one of the fastest-growing major economies, aided by robust domestic demand, fiscal prudence and monetary support, with various forecasters, including ICRA and the RBI’s survey, projecting GDP growth rates for FY26 in the range of 6.2 per cent and 6.5 per cent
New Delhi: The finance ministry on Monday said that India’s macroeconomic fundamentals have remained resilient and the country’s economy has the look and feel of “steady as she goes” as far as the current financial year (FY26) is concerned. Further, it said that given the deflationary trend in the wholesale price index, one has to observe economic momentum in nominal quantities.
“Measured in constant prices, economic activity may appear healthier than it is. The Q1 of FY26 presents a picture of resilient domestic supply and demand fundamentals. With inflation remaining within the target range and monsoon progress on track, the domestic economy enters the second quarter of FY26 on a relatively firm footing,” finance ministry said in its monthly economic review for June 2025.
The ministry further said that India appears poised to continue as one of the fastest-growing major economies, aided by robust domestic demand, fiscal prudence and monetary support, with various forecasters, including ICRA and the RBI’s survey, projecting GDP growth rates for FY26 in the range of 6.2 per cent and 6.5 per cent.
The ministry also emphasised that India's financial markets have demonstrated notable resilience, primarily driven by strong domestic investor participation. “This resilience is further underpinned by the robust health of the banking sector, as banks have strengthened their capital and liquidity buffers while improving their asset quality,” the review report said.
Agricultural activity, the report said, received a significant lift from a favourable southwest monsoon, which arrived early and has so far delivered above-normal rainfall. “Fertiliser availability and reservoir levels are more than adequate, suggesting a strong outlook for the kharif sowing and harvest and consequent rural income and demand,” it added.
