India’s economy set for steady growth in H2 FY26
India will sustain stable economic expansion through the second half of fiscal year 2026 as domestic spending offsets global trade pressures, SBI Capital Markets said. The brokerage firm noted that internal demand provides a buffer against worldwide instability, particularly after the United States levied 50 percent tariffs on Indian goods. Government investment has accelerated this fiscal year, and recent tax adjustments timed with holiday shopping aim to stimulate consumer activity.
The Confederation of All India Traders forecasts festival sales reaching 4.75 trillion rupees, with automobile purchases showing strength. Central banks worldwide hold more gold than U.S. Treasury securities for the first time in 30 years, though no serious dollar alternative has emerged yet. The Reserve Bank of India loosened lending requirements by eliminating borrower caps and raising collateral limits, pushing the credit-to-deposit ratio above 80 percent.
