Indian Economy Expected to Grow at 6.5% in Current Fiscal Year
Sanjiv Puri, President of the Confederation of Indian Industry (CII), stated that India's Gross Domestic Product (GDP) is expected to grow at a rate of 6.5% in the current financial year (2025–26), asserting that the country’s economy is resilient enough to withstand the short-term impact of geopolitical tensions.
In a special interview with PTI-Bhasha, he emphasized the importance of signing bilateral trade agreements with key global partners in light of rising trade barriers, to protect national interests.
Discussing the increase in private investment across sectors such as energy, transport, metals, chemicals, and hospitality, Puri noted that geopolitical uncertainties might cause some caution in investment flows.
Regarding the economic outlook, he said, "We are expecting a growth rate of 6.5%. We believe this is fundamentally achievable due to our strong economic foundation and solid starting point."
He added, "Recently, interest rates have declined, inflation has softened, and from April 1, there are personal income tax exemptions. Investments from both public and private sectors increased during the second half of the last year."
Addressing the global rise in protectionism and the proposed high tariffs by U.S. President Donald Trump, Puri acknowledged, “Trade is facing increasing barriers at present.”
He advised that India should pursue mutually beneficial and strategic bilateral trade agreements (BTAs). He highlighted the significance of partnerships with major economies such as the United States and the European Union.
Puri also recommended developing a three-tier tariff structure for certain sectors to enhance global competitiveness.