SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. India’s economy likely to grow 6.4-6.7% in FY26 on strong domestic demand: CII President

India’s economy likely to grow 6.4-6.7% in FY26 on strong domestic demand: CII President

04 Jul 2025 Evaluate

Expressing optimism over India’s growth prospects, the newly appointed Confederation of Indian Industry (CII) President Rajiv Memani has said that the country’s economy is likely to grow 6.4-6.7 per cent during the current financial year (FY26) driven by strong domestic demand, even as geopolitical uncertainty poses downside risks. He made a strong case for simple three-tiered GST rate structure, with essential items attracting 5 per cent, luxury and sin goods at 28 per cent, and the remaining items in the 12-18 per cent bracket. Currently, goods and services tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab.

On India's Gross Domestic Product (GDP) growth, he said factors, including a good monsoon forecast, and enhanced liquidity emanating from the Reserve Bank's cash reserve ratio (CRR) cut, and interest rate reduction will support the country's economic growth. Observing that there are some obvious risks, he said ‘A lot of these relate to external trade risk. I think a lot of them have been factored in, and also there are some upside. So hopefully they should get balanced out... From a CII standpoint, we're looking at 6.4-6.7 per cent growth’. He said risks to growth are evenly balanced, and ‘geopolitical uncertainty’ poses downside risks whereas ‘strong domestic demand’ is an upside.

Regarding the goods and services tax (GST), he emphasised on the need for rate rationalisation. Under GST 2.0, he said ‘we have called for rate rationalisation, especially on products that are consumed by lower income segments. Several products taxed at 28 per cent, including cement, should also be reduced... we believe this will boost economic activity’. He also batted for procedural simplification of GST framework and advocated for the need to build a national consensus on inclusion petroleum, electricity, real estate and potable alcohol in GST.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×