The economy is projected to grow at 6.4% this fiscal, impacting growth prospects for FY26 and posing challenges for policymakers preparing for the Union Budget 2025-26 due to private investment demand and subdued government spending. While private consumption is expected to rise by 7.3%, concerns remain regarding slow private sector investment and risks from global uncertainties extending into FY26. Analysts anticipate growth of less than 7% in FY26, emphasizing the need for additional measures to sustain growth momentum and ensure a revival of domestic demand for long-term growth above 7%.
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