India’s Sustained Growth in 2025-26: Implications for Investors and Entrepreneurs in Oman
NEW DELHI: India is poised to navigate trade-related uncertainties and sustain economic growth through the remainder of the 2025-26 fiscal year (April-March) due to robust demand, consistent public spending, and declining inflation, according to the government’s monthly economic report.
The report, released on Thursday, highlighted macroeconomic trends for October, indicating a stable and resilient domestic economy buoyed by easing price pressures and strong consumption patterns.
However, the report also noted that the external environment is fraught with heightened trade-policy uncertainty, urging "continued vigilance" in light of global fluctuations.
The United States, India’s largest trading partner, implemented a significant increase in tariffs on certain Indian imports, doubling them to 50 percent in late August, as a consequence of New Delhi’s purchases of Russian oil. Despite this, discussions for a trade agreement continue between the two nations.
In response to the economic challenges posed by trade uncertainties, Prime Minister Narendra Modi’s administration has introduced a support package totaling $5.1 billion for exporters, along with comprehensive consumption tax reductions to stimulate demand.
The report indicated that rural consumption has shown marked improvement due to favorable agricultural income and strong crop yields, while urban consumption is recovering momentum following recent tax cuts.
Retail inflation reached a historic low of 0.25 percent in October, largely attributed to a steep decline in food prices and reductions in consumer goods taxes.
According to a Reuters poll, India’s economy is projected to grow at a rate of 7.3 percent in the July-September quarter, underpinned by robust rural consumption and government expenditure, despite subdued private capital investment.
Special Analysis by Omanet | Navigate Oman’s Market
The stability of India’s growing economy presents a unique opportunity for Omani businesses to enhance trade partnerships and diversify import sources amidst potential vulnerabilities. However, rising tariffs and global uncertainties pose significant risks that could affect cost structures and market access. Smart investors and entrepreneurs should consider exploring strategic collaborations and stay informed on shifts in trade policies to mitigate risks and leverage growth opportunities.
