India's economy likely to grow by 6.7% in FY26 on cyclical recovery
India's economy is set to grow at 6.7 per cent in FY26, driven by a cyclical recovery and steady market performance, a new report said.
Cyclical recovery refers to the phase in an economic cycle that follows a recession or slowdown, during which economic activity, consumer spending, and business investments start to rise.
Over the past five years, India has witnessed strong earnings growth, with the NIFTY index recording a 20 per cent compound annual growth rate (CAGR), according to a Lighthouse Canton report.
As the economy moves forward, the next phase of growth will depend on key factors such as government capital expenditure, tax benefits for the middle class, and improved consumer demand.
These elements are expected to support earnings recovery and market confidence in 2025, the report said.
India's investment-led expansion has played a crucial role in economic growth. While the government continues to focus on fiscal discipline, private sector investments are expected to gain momentum, contributing to long-term stability.
The Reserve Bank of India's recent 25-basis-point rate cut - the first in nearly five years - signals a supportive stance for economic growth.
'India's economic engine continues to offer long-term promise, however, 2025 will require greater selectivity and discipline,' said Sumegh Bhatia, Managing Director and CEO of Lighthouse Canton in India.
He added that the investors will need to navigate shifting cycles, watch for inflection points in earnings, and remain anchored in fundamentals as the global order undergoes further transformation.
On the global front, market trends and currency movements will influence India's financial landscape, as per the report.
The strength of the US dollar and rising global trade activity are shaping investment flows, while gold remains a preferred asset due to its resilience amid global uncertainties.
'Additionally, crude oil prices are expected to remain stable, benefiting India's import-dependent economy,' the report noted.
In 2025, the focus remains on sustainable growth, disciplined market strategies, and long-term investment opportunities, it added.
Meanwhile India said on Thursday it was studying the impact of the 27 per cent tariff slapped by the US on its imports and vowed to push for a trade deal this year, signalling a conciliatory tone despite failing to get relief from President Donald Trump's trade policy.
New Delhi's response came hours after Trump announced the drastic tariffs that piled more stress on an ailing global economy and sent world stock markets and oil prices tumbling.
While Trump said Indian goods will face a 26% tariff, the White House executive order put the rate at 27%. India's trade ministry too put the rate at 27%, citing the executive order.
A 10 per cent baseline tariff starts on Saturday before the remaining, higher reciprocal tariff takes effect from April 9.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
4 hours ago
- Arabian Post
Apparel Group Unveils Go Colors' First Global Store
Arabian Post Staff -Dubai Apparel Group has marked a significant milestone by launching Go Colors' inaugural international store at Dubai's Silicon Central Mall, signalling the brand's entry into the global retail market. This expansion represents a strategic step for Go Colors, which has established a strong presence in India with its vibrant and affordable fashion offerings. The move aims to capitalise on Dubai's status as a retail hub, known for its diverse, fashion-conscious clientele and high footfall of international shoppers. Go Colors is part of the Apparel Group, a leading retail conglomerate that manages over 75 global brands across the Middle East, India, and beyond. The launch in Dubai is designed to leverage the city's cosmopolitan market, introducing Go Colors' distinct range of colourful apparel, accessories, and lifestyle products to a broader audience. The brand's identity revolves around youthful, trendy designs and a commitment to affordable pricing, which has resonated well with the domestic market and is now poised to attract the diverse demographics of Dubai's shoppers. ADVERTISEMENT Dubai's Silicon Central Mall, a recently developed retail complex situated in the heart of Dubai Silicon Oasis, was chosen for its strategic location and modern infrastructure. The mall is rapidly emerging as a key destination for technology and lifestyle retail, combining innovation with shopping experiences. This aligns with Go Colors' dynamic brand ethos and the Apparel Group's ambition to expand its footprint in premium retail locations. The new store covers approximately 2,000 square feet and features a wide array of products tailored to appeal to men, women, and children, maintaining the brand's core focus on versatility and style. The decision to launch Go Colors internationally reflects broader trends in the retail sector, where Indian-origin brands are increasingly seeking growth beyond domestic boundaries. This expansion is facilitated by Dubai's robust economic framework, ease of doing business, and a strong retail infrastructure that attracts international brands looking to establish a presence in the Middle East. Industry experts note that the Middle East retail market continues to grow steadily, driven by a young population, rising disposable incomes, and a blend of traditional and contemporary shopping preferences. Go Colors' entry into the Dubai market comes amid intensifying competition among apparel brands vying for consumer attention in the region. The brand's strategy focuses on differentiating itself through vibrant colour palettes, frequent new collections, and price accessibility. This approach is expected to attract not only the local UAE residents but also expatriates and tourists, who constitute a significant share of Dubai's retail consumers. By emphasising a youthful and energetic brand image, Go Colors aims to fill a niche that balances trendy fashion with everyday affordability. The Apparel Group's leadership expressed confidence in the growth potential of the new store. The group's CEO highlighted that the launch represents a blend of innovation, market understanding, and the ability to connect with diverse consumer groups. He underlined the importance of Dubai as a gateway for international expansion and pointed to the group's extensive experience in managing multiple global brands as a key asset in navigating new markets. The leadership's vision for Go Colors involves not only store expansion within the UAE but also potential future openings in other strategic locations worldwide. Operationally, the new store employs a mix of local staff trained in customer engagement and product knowledge, ensuring a high standard of service that aligns with the brand's values. The layout of the store is designed to offer a seamless shopping experience, combining colourful, eye-catching displays with intuitive product categorisation. This allows customers to easily navigate through seasonal collections, casual wear, and accessories. Additionally, the store integrates digital elements such as QR codes for product information and promotions, reflecting a growing trend towards blending physical and digital retail experiences. ADVERTISEMENT Market analysts observe that the Apparel Group's expansion strategy is well-timed, considering the growing appetite for fast fashion and lifestyle brands in the Middle East. The region's retail sector is adapting rapidly to shifts in consumer behaviour, with increased demand for value-oriented yet stylish apparel. Go Colors' proposition fits into this paradigm by offering fresh designs frequently, thus catering to consumers seeking variety without compromising affordability. This trend is underscored by data indicating increased spending on casual and lifestyle clothing across GCC countries, driven by younger demographics and evolving fashion sensibilities. While the launch signals optimism, challenges remain for Go Colors as it enters a competitive and sophisticated market. Established international brands and regional players alike have entrenched customer bases, and consumer expectations for quality, trendiness, and service are high. Success will depend on how effectively Go Colors can localise its product offerings, adapt to cultural preferences, and sustain a compelling value proposition. The Apparel Group's experience in the Middle East retail sector, including managing franchises and original brands, is expected to play a crucial role in mitigating these challenges. The store opening is also part of a wider retail resurgence in Dubai, as the city continues to attract global investors and shoppers post-pandemic. Retail experts point to increased foot traffic in malls and rising consumer confidence as indicators of a robust recovery. Government initiatives promoting tourism, retail innovation, and business-friendly policies have contributed to this positive environment. For Go Colors, entering this market now could provide early mover advantages as consumer habits stabilise and purchasing power strengthens.
Al Etihad
4 hours ago
- Al Etihad
Wall Street futures subdued ahead of US-China trade talks
9 June 2025 14:45 (Reuters)US stock index futures were subdued on Monday as investors looked ahead to talks between the United States and China aimed at mending a trade rift that has rattled financial markets for much of the officials from both countries will meet in London to address disagreements around a preliminary agreement struck last month in Geneva that had briefly cooled tensions between the world's largest second-round of meetings comes four days after US President Donald Trump and Chinese leader Xi Jinping spoke by phone, their first direct interaction since Trump's January 20 inauguration. The leaders had, however, left key issues unresolved for future benchmark S&P 500 closed above 6,000 on Friday for the first time since February 21, following a better-than-expected jobs report and a rebound in Tesla's of more trade deals between the US and its major trading partners, along with upbeat earnings and tame inflation data, helped US equities rally in May, with the S&P 500 and the tech-heavy Nasdaq notching their best monthly gains since November S&P 500 remains a little over 2% below all-time highs touched in February, while the Nasdaq is about 3% below its record peaks reached in joined major brokerages in raising its year-end target for the S&P 500, citing renewed optimism in corporate earnings resilience and the accelerating momentum of artificial intelligence-driven growth. It sees the benchmark ending the year at 6,300, compare with 5,800 forecast data releases this week include readings on May consumer prices and initial jobless claims. While investors widely expect the Federal Reserve to keep interest rates unchanged next week, focus will be on any signs of pick-up in inflation as Trump's tariffs risk raising price currently expect nearly two rate cuts by the end of this year, with the first cut seen in September, according to data compiled by 05:56 am ET, Dow E-minis were up 27 points, or 0.06%, S&P 500 E-minis were up 4.5 points, or 0.07%, and Nasdaq 100 E-minis were down 7.5 points, or 0.03%. Most megacap and growth stocks were mixed in premarket trading. Tesla shares fell 2.5% after a report said Baird downgraded the stock to "neutral" from "outperform".
Al Etihad
5 hours ago
- Al Etihad
Musk's father says Elon made a mistake 'under stress' and that Trump will prevail
9 June 2025 13:07 MOSCOW (Reuters)The row between Elon Musk, the world's richest man, and US President Donald Trump was triggered by stress on both sides and Elon made a mistake by publicly challenging Trump, Musk's father told Russian media in and Trump began exchanging insults last week on social media with Musk denouncing the president's sweeping tax and spending bill as a "disgusting abomination.""You know they have been under a lot of stress for five months - you know - give them a break," Errol Musk told the newspaper during a visit to the Russian capital."They are very tired and stressed so you can expect something like this.""Trump will prevail - he's the president, he was elected as the president. So, you know, Elon made a mistake, I think. But he is tired, he is stressed."Errol Musk also suggested that the row "was just a small thing" and would "be over tomorrow."Trump said on Saturday his relationship with billionaire donor Musk was over and warned there would be "serious consequences" if Musk decided to fund US Democrats running against Republicans who vote for the tax and spending bill. Trump had named Musk to head a controversial effort to downsize the federal workforce and slash spending.
