Prime Minister Narendra Modi's imminent full-fledged Budget has the potential to elevate India's economic growth to 7% in FY26 from the expected 6.3% in FY25, according to an SBI Mutual Fund report. The budget is anticipated to introduce fiscal and monetary policy changes to boost demand and address the nation's economic challenges.

India forecast annual growth of 6.4% in the year ending in March, the slowest in four years and below the lower end of government's initial projection, dragged by a weaker manufacturing sector and slower corporate investments.

India’s government lowered its economic growth projection for the fiscal year to the weakest since the pandemic, with economists saying even that forecast may be too optimistic.