Despite the geopolitical heads, the Ministry of Finance is still confident that the growth of India GDP will remain within the 6.3-6.8 percent projected range for FY26, according to Ministry sources that said to Business Today TV.

Describing current challenges as a “temporary mishap”, officials are optimistic that upcoming bilateral trade negotiations with the United States will help to mitigate the impact.

Although the government acknowledged that rates could decrease demand, it was expected that global energy prices and tax reductions in the United States will help to compensate for the effect.

When asked about possible incentives for the industries affected by the decrease in exports, the officer said that the MSMEs are the most affected, as they have no ability to absorb losses, while larger corporations can withstand pressure for some time. Although immediate relief measures are planned, the Government will soon gather exporters to evaluate their concerns.

Government confidence also comes from CAPEX’s perspectives. Despite a strong decrease in the use of capital spending in the first half of the year 25, he hopes to exceed the CAPEX review of 10.18 RS lakes for fiscal exercise. The goal has been reviewed since 11.1 Lakh Crore in the Union budget 2025-26. For exercise 26, the Government has assigned 11.21 RS lakes to capital spending.

“The tax cuts announced in the budget and the increase of CAPEX will help us in exercise 26,” shared an official, strengthening the optimism of the Government to maintain economic boost.

The economic survey presented to Parliament on January 31 designed the growth of India GDP to 6.3-6.8 percent in exercise 26.