New Delhi: India’s economy is expected to grow 7.2 per cent in fiscal 2026, driven by rate cuts, regulatory measures, strong monsoon, government capex and surplus liquidity, a report said on Tuesday.

Some impacts from GDP deflators are expected to fade in FY27, taking real GDP growth to 6.5 per cent and nominal growth pace back towards 10 per cent, the report from Development Bank of Singapore (DBS) said.

The report said that the room for aggressive RBI rate cuts is limited amid firm growth and an inflation undershoot. However, it added that a clear case for reductions could emerge in Q4CY25 if forward risks to growth appear, with prevailing low inflation providing them with the necessary room.

“We expect support from home-grown levers, such as rate cuts, transmission of past reductions

See Full Page