India’s economy continues to grow rapidly, with GDP expected to rise by 7.6 per cent in FY 2026, and exports likely to stay steady at 6 per cent. Looking ahead, growth is expected to remain above 7 per cent in FY 2027, even as global growth is projected to fall below 3 per cent.
Despite geopolitical and tariff challenges, India has grown by more than 7 per cent over the past three years. The Purchasing Managers’ Index at 56.9 for manufacturing and 58.1 for services was the highest among the top economies, the US, China and Germany, in February 2026.
India’s export trajectory remains steady, increasing by around 6 per cent from April to February 2025-26, reaching $791 billion, up from $748 billion in the same period last year. Exports are strongly supported by engineering goods, electronics, chemicals, gems and jewellery, and agricultural products. India has numerous diversification opportunities in advanced, emerging, and developing economies.
On the gas and energy front, India maintains a buffer through strategic petroleum reserves and significant commercial stocks, offering an energy cushion of 50-60 days that surpasses the global average. Additionally, India has diversified its crude import sources, drawing supplies from numerous countries, including Russia, the US, Canada, Brazil, and Mexico.
At the current juncture, strict oversight of supply chains must be enforced to prevent traders or intermediaries from hoarding petrol, diesel, and LPG.
Maintaining reliable fuel supply and public confidence are essential to avoid unnecessary market panic. A coordinated policy approach that includes supply monitoring and strategic stock management will help India navigate global energy fluctuations while safeguarding economic stability.
However, a prolonged US-Israel-Iran conflict could raise logistics costs and lead to price volatility, putting pressure on the transport, logistics, manufacturing, and consumer goods sectors.
MSMEs, which form the backbone of our journey towards Viksit Bharat, require support. Helping them become more resilient to global shocks will strengthen overall growth and job creation. Their working capital needs during global headwinds should be addressed.
The plug-and-play industrial development under the Bharat Industrial Development Scheme (BHAVYA) marks a historic breakthrough in India’s manufacturing sector. A seamless, end-to-end ease-of-doing-business model, from approvals to operations, will meet the aspirations of a new India and contribute to the vision of Viksit Bharat.
