India’s economy is set to grow steadily at 6.5% in the 2025-26 financial year, thanks to good rains, stable prices for things like oil and metals, and people spending more, says a new Crisil report. The big reason? Families are buying more stuff because food prices are down, and farming is doing well—leaving extra cash for fun things. Plus, the 2025-26 Union Budget is cutting taxes and spending big on jobs and projects, making it easier for people to spend.

The Reserve Bank of India (RBI) is jumping in too, planning to lower interest rates by 50-75 points in 2026. This means cheaper loans for everyone. They’re also loosening rules for smaller finance companies, so more money flows to regular folks.

Investments and Global Trouble

People spending is strong, but big companies need to invest more to keep things growing. The government will spend less to save money, so businesses have to step up. But there’s a catch—America might start a trade fight with tariffs, slowing India’s exports. Cheap Chinese goods could flood in too, making trade tricky.

How’s the Economy Doing?

This year (2024-25), growth is at 6.5%, down from last year’s 9.2%, but still close to the usual 6.6% from before COVID. India’s still the fastest-growing big country! By the end of this year, growth could jump to 7.6%. The third quarter hit 6.2%, with farming up 5.6% and services at 7.4%. People spent 6.9% more during festivals and weddings.

What’s Happening in Jobs and Trade?

Factories are busy, making more stuff and building things fast. Exports were weak but are picking up, especially in services. The government boosted its spending to 8.3% from 2.8%, while exports grew big-time to 10.4% from 2.5%. Imports dropped a little.

What’s Coming?

Even with trade problems from other countries, India’s strong at home—people buying, government helping, and easier money rules keep things moving. Risks are out there, but India’s doing great and ready to stay a top-growing country.