India’s growth outlook for 2025-26 remains strong, supported by domestic demand, favourable monsoon conditions, lower inflation, monetary easing, and the positive effects of goods and services tax ( GST ) reforms, the finance ministry said in a report on Monday.

Nevertheless, global uncertainties warrant caution and will continue to affect external demand, presenting downside risks to the growth outlook, it said.

“The lower GST rate is expected to support a positive demand outlook by reducing the tax burden on consumers and businesses, stimulating consumption and investment across sectors and boosting employment generation in the economy,” the ministry said in its latest monthly economic report.

It said demand conditions across rural and urban India strengthened with the implementatio

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