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India’s GDP growth to exceed 6.5% in FY26, says Icra; rural demand and tax relief seen driving momentum

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ICRA projects India's real GDP growth to exceed 6.5% in FY2025-26, with real GVA growth surpassing 6.3%. Rural demand, tax relief, and lower EMIs are expected to fuel this expansion. CPI inflation is projected above 4.2%, while WPI is estimated over 2.7%. The fiscal deficit is forecast at 4.4% of GDP, and the current account deficit at -1%.
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