Indian Economy Expected to Grow at 6.5% in FY26, Says CII President

India’s economy is set on a steady path of growth despite ongoing global uncertainties, according to Sanjiv Puri, President of the Confederation of Indian Industry (CII). In an interview with PTI, he expressed confidence in the nation’s economic fundamentals and advocated for strategic trade partnerships and a sharper focus on internal drivers to sustain momentum.

Strong Foundation Supports Growth Forecast

India’s GDP is projected to grow at 6.5% in the current fiscal, backed by a robust economic base, according to Puri. “We are looking at 6.5%. We believe this number can be achieved fundamentally, because the fact is, we are starting with a reasonably good foundation, a robust economic foundation,” he said. The easing of interest rates, softening inflation, and recent tax concessions are among the key drivers bolstering this outlook.

Puri observed that both public and private investments have gained traction, especially in the latter half of the previous year. Sectors such as energy, transportation, metals, chemicals, and hospitality are witnessing a pickup in investment activity. While geopolitical uncertainties may introduce "some cautiousness" in investor sentiment, India’s resilient economic structure is expected to cushion short-term impacts.

He further noted that rural demand is rising, and although urban demand has remained somewhat flat, it is anticipated to strengthen in the coming quarters. “I think further interest rate easing is another expectation,” Puri added.

Navigating Protectionism Through Strategic Trade Engagement

Addressing global trade tensions and the growing trend of protectionism, including high tariffs proposed by US President Donald Trump, Puri acknowledged that “more and more barriers to trade are coming in right now”. In light of this, he stressed the need for India to actively pursue bilateral trade agreements with major economies like the United States and the European Union.

“We should do whatever we have to do from a national interest perspective, and I think, most important is these bilateral trade agreements,” he stated. Such pacts, according to him, are essential for safeguarding national interests amid rising global trade barriers.

Puri also suggested the implementation of a three-tier tariff structure in select areas to improve India’s global competitiveness. At the same time, he highlighted the significance of strengthening domestic growth levers such as agriculture, climate change adaptation, and structural competitiveness. “These domestic drivers of growth and competitiveness are where we should really press the pedal hard so these can kind of offset some of the uncertainties,” he explained.

Read More: India Set to Surpass Japan as World’s 4th-Largest Economy in 2025: IMF

Conclusion

With resilient fundamentals, easing inflation, and growing investments, India’s economy appears well-positioned to achieve its 6.5 per cent growth target. While global headwinds remain, Sanjiv Puri’s emphasis on bilateral trade agreements and domestic reforms reflects a strategic approach to securing long-term economic stability and progress.

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