Why Budget Holds Key To Growth In 2026

Rumki Majumdar
Jan 2, 2026 | 09:23 IST

2025 was well played by GOI, but persisting challenges, ranging from a uncertain US admin to sluggish credit growth, and risk of inflation at home and abroad, call for more reforms

The year 2025 will be remembered as one when India turned global challenges into a catalyst. While trade wars flared and capital flows swung wildly across markets, India quietly rewrote its playbook, leaning on domestic demand, bold reforms and strategic trade moves to keep growth on track. Meanwhile, economic fundamentals improved. Growth firmed, inflation hit a decadal low, consumption surged, and a long-awaited sovereign rating upgrade signalled confidence in the country’s fundamentals.

Now, when the calendar has flipped to 2026, the question is not whether India can grow, but how it will sustain momentum amid an unpredictable world. With prudent policies and strategic investments, the country can reinforce its position as one of the fastest growing major economies in a volatile world.
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