PTI New Delhi

India's macroeconomic variables are expected to remain stable in FY26, with GDP growth staying around 6.5 per cent, said multi-conglomerate ITC in its latest annual report. Besides, ITC also expects an uptick in the consumption growth helped by continued rural recovery along with improvement in urban demand which was subdued due to high inflation.

"Consumption expenditure is expected to pick up progressively led by continued recovery in rural demand backed by a good monsoon, along with improvement in urban demand as inflation stabilises and tax cuts announced in the Union Budget boost disposable incomes," said ITC.

Besides, the cumulative impact of pick up in capex in the second half of FY25 and increase in capex outlay by the government announced in the budget, along with interest rate cuts and liquid support from RBI, would also be supportive of growth, it said.

"The Indian economy is poised to grow rapidly in the years ahead driven by structural factors such as a favourable demographic profile, increasing affluence, rapid urbanisation, accelerated digital adoption and the entrepreneurial spirit of its people," it said.

Government thrust on strengthening country's physical and digital public infrastructure, focus on enhancing the competitiveness of the manufacturing sector, indirect/direct taxation and financial sector reforms, along with measures to promote ease of doing business, are expected to power the economy going forward.