India projected to grow at 6.6%, resilient consumption, public investment to...

Key Highlights

• “Resilient private consumption, strong public investment, recent tax reforms, and lower interest rates are expected to support near-term growth.
• However, higher US tariffs could weigh on export performance in 2026 if current rates persist, as the US market accounts for about 18 per cent of total exports from India,” the report said.
• It added that while tariffs may adversely affect some product categories, key exports such as electronics and smartphones are expected to remain exempt.
• “Moreover, strong demand from other major markets, including Europe and the Middle East, is projected to partially offset the impact,” it said, adding that on the supply side, continued expansion in manufacturing and services sectors will remain a key driver of growth throughout the forecast period.
• The report stressed that India’s growth will be supported by resilient consumption and strong public investment, which “should largely offset the adverse impact of higher US tariffs”.