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Economic Times
5 days ago
- Business
- Economic Times
India's GDP growth to slow down to 6.2% in FY26, says Kotak Bank Chairman
Synopsis Kotak Bank anticipates India's GDP growth to decelerate to 6.2% in FY26 due to the impact of US tariffs, creating economic uncertainty. High-frequency indicators reveal a softening in economic activity, mirrored by a slowdown in credit growth. Despite this, India's economy demonstrated resilience in FY25, supported by strong fundamentals and proactive policies, with inflation trending favorably. ANI India's GDP growth to slow down to 6.2% in FY26, says Kotak Bank Chairman Kotak Bank expects India's GDP growth to slow down to 6.2% in the current fiscal year after Trump's 25% tariffs cause economic uncertainty. 'With the 25% tariff imposed on Indian exports by the USA and an unknown penalty, uncertainty continues to remain elevated. The GDP growth is expected to slow down to 6.2% in FY26, said C S Rajan, Chairman of Kotak Mahindra Bank. The more recent high-frequency indicators continue to show softness in activity, which is also reflecting in the slowing credit growth, he World Bank, in April, cut the FY26 growth forecast from the projected 6.5% to 6.3%, stating that the country needs to step up domestic revenue mobilisation to increase resilience against future shocks. The government, however, projected India's economic growth between 6.3% to 6.8% for 2025-26. 'India is projected to be world's fastest-growing major economy (6.3% to 6.8% in 2025-26),' as stated in a PIB release dated June 2024–25 alone, nominal GDP grew by 9.9% over the previous year, while real GDP (at constant prices) increased by 6.5%, reflecting sustained economic on India's economy, Rajan said that the country's economy has displayed resilience during FY25, supported by robust macroeconomic fundamentals and proactive policy measures. The inflation trends have further turned benign in Q1 of the current financial year, with recent inflation readings dropping to as low as 2.1%, he added. In this environment of benign inflation and growth slowdown, the Reserve Bank of India has cut the policy repo rate by 100 bps to 5.5% and provided aggressive liquidity measures to spur growth.
Time of India
5 days ago
- Business
- Time of India
India's GDP growth to slow down to 6.2% in FY26, says Kotak Bank Chairman
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Kotak Bank expects India's GDP growth to slow down to 6.2% in the current fiscal year after Trump's 25% tariffs cause economic uncertainty 'With the 25% tariff imposed on Indian exports by the USA and an unknown penalty, uncertainty continues to remain elevated. The GDP growth is expected to slow down to 6.2% in FY26 , said C S Rajan, Chairman of Kotak Mahindra Bank The more recent high-frequency indicators continue to show softness in activity, which is also reflecting in the slowing credit growth, he World Bank, in April, cut the FY26 growth forecast from the projected 6.5% to 6.3%, stating that the country needs to step up domestic revenue mobilisation to increase resilience against future government, however, projected India's economic growth between 6.3% to 6.8% for 2025-26.'India is projected to be world's fastest-growing major economy (6.3% to 6.8% in 2025-26),' as stated in a PIB release dated June 2024–25 alone, nominal GDP grew by 9.9% over the previous year, while real GDP (at constant prices) increased by 6.5%, reflecting sustained economic on India's economy, Rajan said that the country's economy has displayed resilience during FY25, supported by robust macroeconomic fundamentals and proactive policy inflation trends have further turned benign in Q1 of the current financial year, with recent inflation readings dropping to as low as 2.1%, he this environment of benign inflation and growth slowdown, the Reserve Bank of India has cut the policy repo rate by 100 bps to 5.5% and provided aggressive liquidity measures to spur growth.
