‘Robust economic foundation’: CII sees Indian economy growing at 6.5% in FY26 despite global headwinds

India’s GDP is projected to grow at 6.5 per cent in the current fiscal year, with the economy resilient enough to withstand short-term geopolitical disruptions, CII President Sanjiv Puri has said. Speaking to PTI, he emphasised the need for India to strengthen its trade position by pursuing bilateral agreements, especially amid the rising trend of global protectionism.On the outlook for FY26, Puri said, "We are looking at 6.5 per cent. We believe this number can be achieved fundamentally, because the fact is, we are starting with a reasonably good foundation, robust economic foundation."He highlighted several positive macroeconomic indicators supporting this projection, including easing interest rates, declining inflation, personal income tax concessions effective from April 1, and a noticeable pickup in both public and private investments in the latter part of the previous fiscal year.Private investment is reportedly gaining momentum in key sectors such as energy, transportation, metals, chemicals, and hospitality. However, Puri acknowledged that current geopolitical uncertainties could result in "some cautiousness" when it comes to investment decisions.Responding to questions on the rising global trend of protectionism and high tariffs, including those previously proposed by US President Donald Trump, Puri said, "More and more barriers to trade are coming in right now," and underlined the importance of securing India’s economic interests through strategic bilateral trade agreements. "Therefore, the countries that India is pursuing, and the big ones among them, being the US and EU, are important. We should do whatever we have to do from a national interest perspective, and I think, most important is these bilateral trade agreements."He also recommended establishing a three-tier tariff structure for specific sectors to improve global competitiveness.Puri stressed the need to focus on internal economic levers such as agriculture, climate adaptation, and overall domestic competitiveness. "These domestic drivers of growth and competitiveness are where we should really press the pedal hard so these can kind of offset some of the uncertainties. I think further interest rate easing is another expectation," he said.Noting demand trends, Puri added that rural consumption is beginning to rise, while urban demand, though currently flat, is expected to pick up in the coming quarters.