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  3. Indian economy projected to grow at 6.5% in FY 26: CII president

Indian economy projected to grow at 6.5% in FY 26: CII president

12 May 2025 Evaluate

The Confederation of Indian Industry (CII) president Sanjiv Puri has said that India's GDP is projected to grow at 6.5 per cent in the current fiscal (FY26) and the country's economy is resilient enough to overcome the short-term impact of geopolitical issues. He asserted that the country must pursue bilateral trade pacts with key trading partners to protect national interests in the backdrop of increasing trade barriers.

Highlighting that the private investment is picking up across various sectors like energy, transportation, metals, chemicals and hospitality, he said the current geopolitical uncertainties could lead to some cautiousness in investment. He said ‘We are looking at 6.5 per cent. We believe this number can be achieved fundamentally, because the fact is, we are starting with a reasonably good foundation, robust economic foundation.’ He stated ‘In the recent past, interest rates have eased. Inflation is becoming benign. There is this personal income tax concession taking in from the first of April. Investments picked up in public and private space in the latter half of last year.’

Besides, on the high tariffs proposed by US President Donald Trump on several key economies and the trend of rising protectionism globally, Puri acknowledged that ‘more and more barriers to trade are coming in right now’, suggesting that India should do bilateral trade agreements which are mutually beneficial and in the national interest. He said ‘Therefore, the countries that India is pursuing, and the big ones among them, being the US and EU, are important. We should do whatever we have to do from a national interest perspective, and I think, most important is these bilateral trade agreements.’

He also recommended the creation of a three-tier tariff architecture for certain areas to enhance competitiveness. Moreover, he emphasised the need to focus on the domestic drivers of growth and competitiveness. He observed that a lot of work needs to be done on agriculture, climate change and adaptation.


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