Indian Economy Shows Resilience Amid Global Challenges; GST Cuts Boost Domestic Demand and Infrastructure Push Continues

September 28, 2025

India's economy demonstrates strong growth and resilience, with GDP expanding by 7.8% in Q1 FY26, positioning it as the fastest-growing major economy globally. Recent GST rate cuts are expected to temper inflation to 3.5% and stimulate domestic demand, leading to price reductions in various consumer goods. However, potential US tariffs on Indian goods pose a significant risk to exports and investments. Concurrently, the government is driving substantial infrastructure development, while challenges persist in India-China business relations.