India's economy projected to grow at 6.5% in FY26: EY report

The FY25 third quarter (Q3) growth is estimated at 6.2 per cent, implying a required growth of 7.6 per cent in Q4 to deliver an annual GDP growth of 6.5 per cent estimated by the country’s National Statistical Organisation (NSO).

"A 7.6 per cent growth in the last quarter will require a 9.9 per cent growth in private final consumption expenditure. Such a high growth has not been experienced in recent years," the report said.

"An alternative to this is to increase investment expenditure, where the government's capital expenditure growth plays a critical role," it noted.

The government’s fiscal deficit as per the revised estimates may be affected by any subsequent supplementary demand for grants, it added.

ALCHEMPro News Desk (DS)